By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) has rejected the request by the majority shareholder of PZ Cussons Nigeria Plc to acquire the stocks of the firm held by other shareholders at N23 per share.
PZ Cussons, which earlier announced its intention to exit the Nigerian market due to the rising cost of production and others, proposed to buy out the shares held by other investors of the organisation.
It filed an application to the SEC, which is the highest regulatory body in the Nigerian capital market, for approval, but this was not granted.
In an update filed at the Nigerian Exchange (NGX) Limited, PZ Cussons said the SEC did not accept the N23 per share PZ Cussons (Holdings) Limited offered minority shareholders for the deal.
“PZ Cussons Nigeria Plc hereby notifies the Nigerian Exchange Limited 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 intention to acquire the shares held by all the other shareholders of PZCN at an offer price of N23 per share (the proposed transaction).
“The board will communicate further developments to shareholders in due course,” a statement signed by the company secretary, Ms Olubukola Olonade-Agaga, said.
Business Post reports that this is the second time the offer price of PZ Cussons has been rejected.
In September 2023, PZ Cussons (Holdings) Limited put its offer price for the acquisition at N20 per unit, but the minority investors reportedly rejected this.
About two months later, this was raised by 15 per cent to N23 per share, representing “a premium of 35 per cent to the company’s share price of N17 on August 17, 2023, being the last traded price prior to the offer date,” but this has been turned down by the regulator.
PZ Cussons wants to delist its shares from the local stock exchange, and its core investor is looking to be in total control of the company’s equities as the firm goes private.
