Nestlé S.A pays N286.9m for additional 229,697 shares of Nestle Nigeria
In a deal consummated on the Nigeria Bourse on September 11, Nestlé S.A, a Swiss multinational food and drink processing company has further increased its equity stake in the Nestle Nigeria Plc.
The world’s largest food & beverage company purchased additional 229,697 units of Nestle Nigeria Plc ordinary shares at N1, 249.65 per share, amounting to N286.9million.
The price at which the shares were exchanged represents a discount when compared to reviewed target price (TP) of N1, 343.2 per share which United Capital analysts set for the stock in their August 4 note to investors. In that note, the analysts maintained their “Buy” rating on the ticker.
Nestle Nigeria Plc’s financial result for half-year (H1) 2020 show both revenue and profit after tax declined by 0.6 percent year-on-year (y/y) and 16.8percent to N141billion and N21.8billion, respectively. This was as all the cost items save for selling and distribution expense grew y/y across the board.
Nestlé S.A is the largest food company in the world, measured by revenues and other metrics. Nestlé’s products include baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.