Nestle SA increases stake in Nestle Nigeria with 1.1m share purchase
Nestle SA, a Swiss multinational food and drink processing company and also the parent company of Nestle Nigeria, has increased its shares in the company following an additional purchase of 214,924 units of the company’s stocks in a single transaction— at an average share price of N1.400 per share.
This was disclosed by the company in a notification signed by Bode Ayeku, the company’s secretary, sent to the Nigerian Stock Exchange and is coming after a series of four other similar transactions between August and September 2020, where it acquired 1,192,668 shares with prices between N1174.67 and N1400 as a majority shareholder, Nestle SA now has a total of 525,752,125 shares representing 66.3 percent of the company’s total shares.
The acquisition of Nestle Nigeria’s shares by the parent company strengthens control for one of Nigeria’s largest Fast Moving Consumer Goods Company in Nigeria. At the close of market on Monday, the company’s share price remained unchanged at N1450 per share.
Nestlé is the largest consumer goods firm in the NSE. It is known for its active role in local sourcing of raw materials in the country. According to its manufacturing operations report, the company purchases its raw and packaging materials majorly from local sources, believing that it will help develop the economy, create job opportunities and help in maintaining a less weak stance for the naira as against the continuous dominance of the dollar.
It has a wide variety of products ranging from cereals to milk, coffee, seasoning, spices, and beverages.
Presently, the manufacturer sources 80 percent of its maize, sorghum, millet, soya, cassava starch, cocoa powder, and palm olein from more than 41, 600 local farmers and processors scattered across the country.
Furthermore, Nestlé Cereals Plan project has over 30,000 farmers who supply 100 percent of the grain requirement for Golden Morn Maize. Through its Sorghum and Millet in the Sahel (SMS) project, now called Nestlé Nigeria & IFDC / 2Scale Project Sorghum & Millet. In the course of this project, the food and beverage giant has engaged no less than 10,671 farmers.
Nestlé helps farmers improve their livings by investing in sustainable farming practices through the Sorghum and Millet in the Sahel and Feed Future Nigeria and Nestlé Maize Quality Improvement projects.