PZ Cussons Nigeria Plc (PZCN) has announced its that PZ Cussons (Holdings) Limited plans to purchase all outstanding shares from its shareholders at a rate of N21 per share.
Nairametrics learns that PZCN currently has 3,970,477,045 shares listed on the Nigerian Exchange Limited (NGX).
As of May 31, 2022, apart from the UK-based Holdings, no single shareholder holds more than five percent of the Group’s paid-up capital.
This proposed transaction is however contingent upon approval by PZCN’s board, the company’s shareholders, and the necessary regulatory authorities according to a statement signed by its Ag. Company Secretary, Olubukola Olonade-Agaga on the floor of the NGX.
What she said
In her statement, she indicated that PZ Cussons Group’s offer is driven by the belief that the transaction is essential to streamline and fortify its operations in Nigeria and execute its strategic plans effectively.
Additionally, she mentioned that the Group aims to cultivate a more agile and innovative business environment.
She said,
- “This will require the Company to convene a general meeting of its shareholders by an order by the Federal High Court.
- “Details of the Court Ordered Meeting (which includes the date, time, venue, and agenda for the meeting) will be communicated to shareholders upon receipt of the requisite approvals from the Board, the Securities and Exchange Commission, and the Federal High Court.
- “The terms and conditions of the Proposed Transaction will be provided in the Scheme Document which will be dispatched to all shareholders before the Court Ordered Meeting.
- “Further developments will be communicated to shareholders in due course. The Company’s shareholders and members of the public are advised to exercise caution in dealing in PZCN’s shares until further information is provided,” he said in a statement on the Exchange,” the statement read.
The proposed transaction is planned to be executed via a Scheme of Arrangement, following the provisions of section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended), along with other applicable regulations.
PZ’s performance so far
The audited annual financial results and accounts for the period ending May 31, 2022, reveal profit growth driven by a substantial increase in revenue for the Consumer Goods company.
PZ Cussons Nigeria (PZCN) concluded the 2022 financial year with a profit before tax of N10.01 billion, a significant upswing from the N3.19 billion profit before tax recorded in 2021.
After accounting for tax expenses of N3.3 billion, PZ Cusson Nigeria reported a profit of N6.7 billion, representing an increase of 276.43 percent compared to the N1.78 billion reported in 2021.
Consequently, the company declared a dividend of N4 billion, equivalent to N1.01 per ordinary share.
What is happening to most of out blue chip companies and conglomerates, Cadbury had moved to Ghana, Glaxosmithkline is about moving and PZCN is also planning to buy overits shares from the shareholders and thereby delisting or turn to private placement organization.
I think this should be a serious concern for the nation because of the economic implication to the country in terms of revenue generation and unemployment it will cause.