PZ Cussons to acquire entire Nigeria’s subsidy shares at N21
By Philemon Adedeji
PZ Cussons Nigeria Plc (PZCN), yesterday reported plans by PZ Cussons (Holdings) Limited to acquire shares held by all its shareholders at an offer price of N21 per share.
It was gathered that PZCN currently listed 3,970,477,045 units of shares on the Nigerian Exchange Limited (NGX).
Apart from Holdings that is in UK, no other shareholder held more than five per cent of the paidup capital of the Group as of May 31, 2022.
The Nigeria subsidiary of PZ Cussons in a statement signed by its Ag. Company Secretary, Olubukola Olonade-Agaga on the floor of the Nigerian Exchange Limited (NGX), said the proposed transaction is subject to the consideration and approval of the board of PZCN, the company’s shareholders and requisite regulatory authorities.
According to him, PZ Cussons Group in its offer explained that it believes the transaction is necessary in order to enable them to significantly simplify and strengthen operations in Nigeria creating the foundations for the Nigerian business to deliver against its strategy.
He said the Group also aimed at building a more agile and innovative business, and noted that it has been present in Nigeria since 1899 and expects Nigeria to remain an important market for the Group for many years to come.
He expressed that PZ Cussons Group intended that the proposed transaction will be implemented under a Scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations.
“This will require the Company to convene a general meeting of its shareholders by an order by the Federal High Court. Details of the Court Ordered Meeting (which includes the date, time, venue and agenda for the meeting) will be communicated to shareholders upon receipt of the requisite approvals from the Board, the Securities and Exchange Commission and the Federal High Court. The terms and conditions of the Proposed Transaction will be provided in the Scheme Document which will be dispatched to all shareholders prior to the Court Ordered Meeting.
“Further developments will be communicated to shareholders in due course. The Company’s shareholders and members of the public are advised to exercise caution in dealing in PZCN’s shares until further information is provided,” he said in a statement.
The Consumer Goods company audited year result and accounts for the period ended May 31, 2022 showed sustained growth in profit driven by double-digit growth in revenue.
PZCN closed 2022 financial year with N10.01billion profit before tax from N3.19 billion profit before tax reported in 2021 financial year. With tax expenses of N3.3billion, PZ Cusson Nigeria reported profit of N6.7 billion from N1.78billion reported in 2021, representing an increase of 276.43 per cent.
The company declared a dividend of N4billion representing a payment of N1.01 per ordinary share,
The company’s revenue hits another milestone in 2022, driven by growth recorded in its home and personal care products and durable electrical appliances amid low purchasing power due to double-digit inflation, among other factors.
