Shareholders applaud SEC’s rejection of PZ Cussons’ buyout and delisting proposal

Shareholders under the aegis of the New Dimension Shareholders Association of Nigeria applauded the Securities and Exchange Commission’s (SEC) rejection of PZ Cussons’ bid to acquire shares of minority shareholders and delist from the NGX.

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.

Reacting to the development, Mr Patrick Ajudua, the President of the New Dimension Shareholders Association, who spoke to Nairametrics exclusively said shareholders were excited at the news of the rejection notice for the application to delist, seeing it as a clear affirmation of the SEC’s commitment to safeguarding minority shareholders.

Ajudua noted that the development underscores the importance of a strong collaborative effort between regulatory authorities in the capital market and shareholders to ensure the protection of investors.

• “The management of PZ, represented by the majority holder PZ (UK), had attempted to discreetly disadvantage minority shareholders through a delisting payment offer of a meagre N23, despite requests for a fairer offer of N40, reflecting the stock’s market value and considering the challenges faced by PZ shareholders, including inconsistent dividend payments and prevailing economic conditions,” he said.

Ajudua noted that there has been a consistent inclination within PZ’s management to exit Nigeria, reminiscent of actions taken in Ghana, where assets were sold off over the past four years.

He noted, however, that they continue to receive substantial payments for global shared services, technical expertise, research and development support, and management fees.

Additionally, they hold dominant positions within the company, such as GMD, CFO, supply chain director, and procurement director, to the detriment of qualified Nigerians.

Ajudua noted that the issue of foreign exchange losses created a better opening for the company to accomplish their agenda to exit Nigeria.

• “Shareholders, recognizing the lack of sincerity in the management’s application, wrote to the regulator urging its rejection.
• It is essential to emphasize our collective determination as shareholders of publicly traded companies to safeguard our interests and ensure equitable treatment,” he said.

What you should know

Nairametrics reported that PZ Cussons Nigeria’s attempt to delist from the NGX has hit the rock 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.”