SEC rejects PZ Cussons’ request to buy out minority investors

PZ Cussons Nigeria Plc says its request to acquire the shares of minority shareholders has been declined by the Securities and Exchange Commission (SEC).

The company disclosed this on Tuesday, in a notice filed on the Nigerian Exchange Limited (NGX) and signed by Olubukola Olonade-Agaga, its secretary.

In September 2023, PZ Cussons Holdings Limited, the UK-based group, had shown interest in buying the remaining 26.73 percent shareholding of its Nigerian subsidiary, PZ Cussons Nigeria Limited, held by minority shareholders at a price of N21 per unit.

However, the offer price was rejected by the shareholders, some of whom felt it was “unfair” to minority shareholders.

If the deal had scaled through, PZ Cussons Nigeria would have been delisted from the NGX.

Giving updates on the transaction on Tuesday, Olonade-Agaga said PZ Cussons Holdings plans to purchase the shares held by other PZ Cussons Nigeria shareholders at N23 per share.

But the secretary said the SEC declined the company’s request for “no objection” to this move.

“PZ Cussons Nigeria Plc or the (“Company”) hereby notifies the Nigerian Exchange Limited (“NGX”) and the investing public that the Securities and Exchange Commission (“SEC”) has declined the Company’s request for its No Objection to PZ Cussons (Holdings) Limited’s (“the majority shareholder”) intention to acquire the shares held by all the other shareholders of PZCN at an offer price of ₦23 per share (the “Proposed Transaction”),” the company said.

Therefore, Olonade-Agaga said the board would communicate further developments to shareholders in due course.

Meanwhile, data from the NGX website shows that PZ Cussons Nigeria Plc has outstanding shares of N3,970,477,045 and its shares per unit stand at N40.

If sold at N23 per share with the outstanding shares, the company would be worth N91.32 billion.