The request of PZ Cussons Holdings, the major shareholders of PZ Cussons Nigeria Plc, to buy out other shareholders has been rejected by the Securities and Exchange Commission (SEC)
This rejection is contained in a notice to the investing community through the Nigerian Exchange Limited (NGX). PZ Cussons Nigeria said that the capital market regulatory body (SEC) has declined its request to buy the shares held by other PZ Cussons Nigeria shareholders at N23 per share.
The statement partly reads: “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 N23 per share (the “Proposed Transaction”).” The said statement was signed by the Company’s Secretary, Olubukola Olonade-Agaga.
The statement did not give any reason for the rejection by SEC, but added that the Board will communicate further development to shareholders in due course.
Recall that in September 2023, the UK-based group, PZ Cussons (Holding) Limited announced its intention to buy the remaining 26.73 percent shareholding of its Nigerian subsidiary, PZ Cussons Nigeria Limited held by minority shareholders at a price of N21 per unit. This move, if approved, meant a delisting of PZ Cussons Nigeria shares from the trading on NGX.
The shareholders, however, rejected the offer price and said it is unjust to minority shareholders, but after some consideration, the buying company increased the offer from N21 per share to N23 per unit in November.
PZ Cussons Nigeria posted a pre-tax loss of N73.8 billion in its H1 2024 results. The results showed a significant fall from the N9.3 billion pre-tax profit posted in the corresponding period of the previous year.
