Nestle South Africa invests N156.53m in Nestle Nigeria
By Kayode Tokede
Nestle South Africa has bought N156.53 million additional worth of shares in its Nigerian subsidiary, Nestle Nigeria Plc.
The fresh purchase is coming a little over a week after Nestle South African bought N175.216m worth of Nestle Nigeria shares.
According to a disclosure on Monday by the company Secretary, Bode Ayeku, the beverage company bought two tranches of shares which are
12,109 and 100, 668 totalling 112, 775 units valued at N1,388 per share, putting the amount at N156.531 million.
Ayeku stated that the transactions took place on 11th and 13th August on the floor of the Nigerian Exchange Group (NGX).
The company had also on August 6th announced the acquisition of three tranches of shares which are 43,104, 52,704 and 29,705 totalling 125,513 units valued at N1, 3996 per share, putting the amount at N175.216 million.
This fresh round of capital market dealing is one of many transactions embarked upon by the Beverage brand into its Nigerian subsidiary recently.
Nestle South Africa had in early March invested N500 million into Nestle Nigeria, after acquiring 400,000 shares of the Nigerian food and beverage firm.
The company also in mid-March, purchased 448,080 shares of Nestle Nigeria worth N1,375 per share.
The recent acquisition and investment by Nestle South Africa came after three other investments at N3.7 billion prior to the latest deals.
Nestle S.A is the major shareholder of the Nigerian subsidiary, had initially invested N2.92 billion after acquiring 2.16 million shares within two days, March 2 and 3. Later in the second week, March 12, Nestle S.A made another round of investment worth N773.79 million following the acquisition of 562,796 shares.
In total, Nestle Nigeria Plc has received over N4. 3 billion investment from its majority shareholder.
Nestle S.A holds 66.50 per cent shares of Nestle Nigeria, Stanbic IBTC Nominees Limited account for 6.28 per cent, while no other shareholder holds above 3 per cent as of December 31, 2020.
Although its shares dropped from N1, 396 per share, its current share price of N1, 388 per share, makes Nestle Nigeria Plc share value to be by far the most expensive on the Nigerian Exchange Group (NGX).
