PZ Cussons says Nigeria’s securities regulator, SEC, has blocked the move by its parent company to buy out all minority shares in the company.
The UK-headquartered PZ Cussons Holdings in September announced plan to acquire all shares in the Nigeria unit. The firm currently has 73.3 percent interest in the Nigeria unit.
The maker of Carex soap and Imperial Leather said the parent company had offered to acquire all of its shares at ₦21 per share. The Securities and Exchange Commission has turned down a N23 per share offer to other shareholders, it said in a regulatory filing Tuesday. The company closed at N40 on Wednesday at the Nigeria Exchange Ltd.
“PZ Cussons Nigeria Plc hereby notifies the Nigerian Exchange Limited and the investing public that the Securities and Exchange Commission 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 ₦23 per share,” the company stated.
It was not clear why the SEC took the decision. A representative of the agency said additional details may be provided later.
Learn more
PZ Cussons Holdings Ltd said last year it believed that the buyout was necessary “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”.
“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,” he said.
The personal care company has a major market in Nigeria where it sells detergent, soap, cosmetics, refrigerators, freezers and air conditioners products.
Discover more from Pluboard
Subscribe to get the latest posts sent to your email.