UK-based PZ Cussons attempt to delist Nigerian unit hits roadblock

AFRICAN STOCKS AND FINANCEMarch 24, 2024 at 6:46 AM UTC

TLDR

PZ Cussons Nigeria's delisting plan facing rejection by SEC for major shareholder acquisition proposal at N23 per share.
SEC withholding "No Objection" due to undisclosed reasons in corporate disclosure statement by the company's Secretary.
Uncertainty surrounds the outcome of PZ Cussons Nigeria's delisting as SEC denies approval for share acquisition by major shareholder.

PZ Cussons Nigeria's plan to delist from the Nigerian Exchange Group (NGX) has faced a setback as the Securities and Exchange Commission (SEC) has rejected the company's request for its major shareholder, PZ Cussons (Holdings), to acquire the shares held by other shareholders.

The corporate disclosure revealed that UK-based PZ Cussons (Holdings) aimed to purchase the shares of other shareholders in the Nigeria unit at a price of N23 per share. However, the SEC did not grant its "No Objection" to this proposal.

The specific reasons for the SEC's decision were not provided in the statement released by the Company's Secretary, Olubukola Olonade-Agaga.

Points clés à retenir

In September 2023, PZ Cussons (Holding) Limited, a UK-based group, announced its intention to acquire the remaining 26.73% shareholding of its Nigerian subsidiary, PZ Cussons Nigeria Limited, held by minority shareholders at a price of N21 per unit. This move was aimed at delisting PZ Cussons Nigeria from the Nigerian Exchange Group (NGX). However, the offer price was rejected by the shareholders, with some minority shareholders deeming it "unfair." Subsequently, in its H1 2024 financial results, PZ Cussons Nigeria reported a pre-tax loss of N73.8 billion. This marked a significant decline from the N9.3 billion pre-tax profit recorded in the corresponding period of the previous fiscal year.

$1/N1,469 as of Sunday 7:40 WAT

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