The Chief Executive Officer of PZ Cussons, Jonathan Myers has stated that the company would continue its asset disposal program following access to dollars in Nigeria.
He stated this during the investor call held following the release of the company’s 2024 Q3 result where it recorded a like-for-like growth in revenue of 6%.
According to him, the company has been disposing off some of its assets, mainly residential but halted the process due to cash buildup and problems with currency devaluation.
However, he noted that the company has commenced the process and further identified other assets in Nigeria deemed surplus to requirement.
- He stated, “Also, you’ll remember that, for some time, we have been disposing of the surplus assets in Nigeria, mainly residential property. We ceased this program in light of the cash build-up and concerns over a potential currency devaluation.”
- “However, with greater access to dollars, we have reinstated this activity. In addition, we have identified further assets, inside and outside of Nigeria, which are surplus to our operational requirements.”
The CEO noted that this year, the company has successfully repatriated d £35 million to the holding company and expects a further £15 million by the end of the year.
Recommended reading: PZ Cussons to review its Nigerian business to reduce risks
No increase on buyout offer to shareholders
Furthermore, the Chief Financial Officer of PZ Cussons, Sarah Pollard stated that the company would not increase its buyout offer to its Nigerian shareholders following the rejection of its current offer by the Securities and Exchange Commission (SEC).
Ms. Pollard noted that the company’s offer to shareholders was done in good faith and reflects its valuation of PZ Cussons Nigeria and as such, the offer will be improved.
- She stated, “We are equally clear that was an offer that we made in good faith that appropriately values our business there, and we won’t be increasing that offer.”
Backstory
Nairametrics had earlier reported the company’s plans to reevaluate its African business and consider exit in its Q3 2024 result after currency devaluation in Nigeria marred its result in the past year.
Last year, PZ Cussons announced plans to buy out minority shareholders of the company at N21 per share in a move to delist from the Nigerian Stock Exchange (NGX). However, the offer was rejected by its shareholders on the grounds that the price offer per share did not represent the value of the company.
In October, the company decided to raise the offer to N23 per share but was also rejected by the Securities and Exchange Commission (SEC) because it was below the trading price of the company’s stock on the NGX.
Furthermore, the President of the New Dimension Shareholders Association, Mr. Patrick Ajudua in an exclusive chat with Nairametrics requested a buyout price of N100 per share from the company calling the company’s offer mere peanut.