SEC rejects PZ Cussons’ request to buy shareholders

The Securities and Exchange Commission (SEC) has declined the request of PZ Cussons Holdings, the major shareholders of PZ Cussons Nigeria Plc, to buy out other shareholders.

In a notice to the investing community through the Nigerian Exchange Limited (NGX), PZ Cussons Nigeria informed that the capital market regulatory body (SEC) has declined the request intending to buy the shares held by other PZ Cussons Nigeria shareholders at N23 per share.

The statement signed by the Company’s Secretary, Olubukola Olonade-Agaga 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”).”

Giving no reason for the rejection by SEC, the statement added that the Board will communicate further developments to shareholders in due course.

It be recalled that in September 2023, the UK-based group, PZ Cussons (Holding) Limited announced moves 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 meant a delisting of PZ Cussons Nigeria shares from the trading on NGX.

However, the shareholders rejected the offer price, claiming it was unjust to minority shareholders.

After some consideration, the 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 which reflected a significant decline from the N9.3 billion pre-tax profit posted in the corresponding period of the previous fiscal year.