Food and beverage company Nestle South Africa has acquired NN90.29 billion worth of shares in its Nigerian subsidiary, Estlé Nigeria Plc.
In a corporate notice on insider dealing on Tuesday, signed by its Company Secretary, Bode Ayeku, the acquisition took place in two tranches on Monday and Tuesday on the floor of the Nigerian Exchange Limited in Lagos. In one tranche, 40,000 ordinary shares of Nestle Nigeria were sold at N1,092 per share, amounting to N48.68 billion.
A second tranche saw 37,967 shares sold at N1,096. It was worth N41.61m. This is a total of N90.29 billion worth of shares.
The new stakes would further cement the position of Nestlé S.A. as the majority shareholder in its Nigerian subsidiary.
Nestle Nigeria in its 2022 financial report disclosed revenue of N446.8bn, an increase of 27% over the N351.8bn recorded in the previous accounting year.
The impact this purchase has had on Nestlé Nigeria Plc is immediately evident from their 2022 financial report, which disclosed revenue of an impressive N446.8 billion naira, representing an increase over last year’s N351.8 billion naira figure, indicating that they have experienced significant growth since being acquired by their parent company across borders in South Africa. This new investment should also provide them with the additional capital necessary to continue expanding operations while providing better services or products to customers throughout Nigeria as well as in other countries where they are present, including Ghana and Cameroon, among others.