PZ Cussons to Offload Nigerian Subsidiary as FX Crisis Impacts Operations

By Aduragbemi Omiyale

PZ Cussons is going ahead with its planned sale of its subsidiaries in Nigeria and other African countries, a statement from the multinational has confirmed.

In a note, the British firm said it has received several expressions of interest from investors for its St Tropez brand and may totally offload its African subsidiaries.

PZ Cussons has not found it easy operating in one of its biggest markets on the continent, Nigeria, because of the foreign exchange (FX) crisis that led to the devaluation of the local currency, Naira.

The cost of operations has gone on top of the roof because of the dual policy of forex unification and subsidy removal, which jacked energy and transportation costs higher.

Its business in Nigeria under the name, PZ Cussons Nigeria Plc, is listed on the Nigerian Exchange (NGX) Limited.

In a notice to investors, the company said it has yet to receive any formal notification concerning this planned divestment from its parent organisation, promising to update the market when it does.

“On September 18, 2024, the ultimate parent company of PZ Cussons Nigeria Plc, issued a public release with the title Results for the Year Ended 31 May 2024.

“Within the press release, on Page 1, the following was included, The favourable trends of the second half of FY24 have continued into the new financial year. We are progressing with our plans to sell St. Tropez and have received a number of expressions of interest for our African business, recognising the potential of our brands and people, which could lead to a partial or full sale.

“The Board of PZCN has not at this time received any formal notification or more detail on this matter from the parent company, and will make the necessary disclosures as and when it receives more information.

“Please note that the company’s closed period, which commenced on September 1, 2024, will remain in effect until 24 hours after the release of the Unaudited Financial Statements for the first quarter ended August 31, 2024, to the market.

“Consequently, no director, persons discharging managerial responsibilities, audit committee members, advisers, consultants and employees, with insider information or their connected persons shall deal directly or indirectly in the securities of the company during this closed period,” the disclosure stated.