• Tuesday, February 27, 2024
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PZ Cussons to buy out minority shareholders in Nigerian subsidiary

PZ Cussons considers other options if SEC rejects buy-out, delisting plans

PZ Cussons (Holdings) Limited has disclosed its intention to acquire the shares held by all the other shareholders of PZ Cussons Nigeria Plc (PZCN), subject to prevailing market conditions.

PZCN, in a statement on Monday, notified the Nigerian Exchange Limited and the investing public that PZ Cussons offered to buy the shares at N21 apiece.

The proposed transaction is, however, subject to the consideration and approval of the Board of PZCN, the company’s shareholders and requisite regulatory authorities, according to the statement.

Read also: PZ Cusson reports N15.01bn consolidated revenue Q1 2014

It said: “In their offer, the PZ Cussons Group explained that they believe 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, and 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.”

Read also: PZ Cussons: Driving profit despite inflationary pressures

PZCN said details of the court-ordered meeting would be communicated to shareholders upon receipt of the requisite approvals from the board, the Securities and Exchange Commission and the Federal High Court.

It said: “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.

Read also: Pz Cussons triples half-year profit

“Further developments will be communicated to shareholders in due course. The company’s shareholders and members of the public are advised to exercise caution in dealing in PZCN’s shares until further information is provided.”