PZ Cussons Nigeria’s attempt to delist from the NGX has hit a roadblock as the Securities and Exchange Commission has declined the company’s request for its major shareholder, PZ Cussons (Holdings) to buy out other shareholders.
According to a corporate disclosure seen by Nairametrics, PZ Cussons (Holding) intended to buy the shares held by other PZ Cussons Nigeria shareholders at N23 per share.
However, the SEC declined the company’s request for “No Objection” to this move.
Reasons for SEC’s decline to the request were not contained in the statement signed by the Company’s Secretary, Olubukola Olonade-Agaga.
The statement read,
- “PZ Cussons Nigeria Plc (“PZCN” or the “Company”) hereby notifies the Nigerian Exchange Limited (“NGX”) and the investing public that the Securities and Exchange Commission (“SEC”) has declined the Company’s request for its No Objection to PZ Cussons (Holdings) Limited’s (“the majority shareholder”) intention to acquire the shares held by all the other shareholders of PZCN at an offer price of ₦23 per share (the “Proposed Transaction”).”
- “The Board will communicate further developments to shareholders in due course.”
What you should know
In September 2023, the UK-based group, PZ Cussons (Holding) Limited announced moves to buy the remaining 26.73% shareholding of its NIgerian subsidiary, PZ Cussons Nigeria Limited held by minority shareholders at a price of N21 per unit.
The move effectively meant a delisting of PZ Cussons Nigeria from the NGX.
- However, the shareholders rejected the offer price, with some of the shareholders claiming it was “unfair” to minority shareholders.
- Speaking to Nairametrics, Mr Patrick Ajudua, the President of New Dimension Shareholders Association noted,
- “Any amount below N100 per share is completely unacceptable to the Nigeria shareholders and will be resisted appropriately.”
The offer was increased to N23 per unit in November.
PZ Cussons Nigeria posted a pre-tax loss of N73.8 billion in its H1 2024 results which reflected a significant decline from the N9.3 billion pre-tax profit posted in the corresponding period of the previous fiscal year.
