Consumer goods firm, PZ Cussons said on Tuesday it has offered to buy out minority shareholders of PZ Cussons Nigeria (PZCN) and aims to de-list the business from the Nigerian stock exchange amid "foreign exchange challenges" in the country.
PZ Cussons Holdings Ltd, the core shareholder of PZ Cussons Nigeria Plc has notified the Nigerian Exchange Limited of its intention to acquire the shares held by all the other shareholders of the Nigerian company, at an offer price of ₦21 per share.The company shares closed at N19.10 on Monday.
In a statement Monday night, the company said the proposed
transaction is however, subject to the consideration and approval of the Board
of PZCN, the Company’s shareholders and requisite regulatory authorities.
In its offer, the PZ Cussons Group 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, building a more agile and
innovative business.
The group noted that PZ Cussons has been present in Nigeria
since 1899 and expects Nigeria to remain an important market for the Group for
many years to come.
It is 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 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, said acting company secretary, Olubukola Olonade-Agaga.
The statement warned the Company’s shareholders and members
of the public to exercise caution in dealing in PZCN’s shares until further
information is provided.