PZ Cussons (Holdings) Limited has revealed its intention to acquire all outstanding shares from its shareholders at a rate of N21 per share. PZCN, a well-established consumer goods company, currently has 3,970,477,045 shares listed on the Nigerian Exchange Limited (NGX).
This strategic proposal, which aims to consolidate ownership, was disclosed in a statement by the Ag. Company Secretary of PZCN, Olubukola Olonade-Agaga, during a session at the NGX. It’s important to note that as of May 31, 2022, no single shareholder, apart from the UK-based Holdings, held more than five percent of the Group’s paid-up capital.
However, this acquisition’s success hinges on approvals from various quarters. Olonade-Agaga emphasized, “This proposed transaction is contingent upon approval by PZCN’s board, the company’s shareholders, and the necessary regulatory authorities.”
PZ Cussons Group’s decision to make this move is underpinned by its belief that this transaction will streamline and strengthen its operations in Nigeria, enabling the effective execution of its strategic plans. The Group also seeks to foster a more agile and innovative business environment as part of its long-term vision.
Olonade-Agaga detailed the procedural aspects of the impending acquisition, stating, “This will require the Company to convene a general meeting of its shareholders by an order by the Federal High Court. Details of the Court Ordered Meeting (which includes the date, time, venue, and agenda for the meeting) will be communicated to shareholders upon receipt of the requisite approvals from the Board, the Securities and Exchange Commission, and the Federal High Court.”
The terms and conditions of the Proposed Transaction will be laid out in a Scheme Document, which will be dispatched to all shareholders before the Court Ordered Meeting. Additional developments related to this transaction will also be communicated to stakeholders in due course.
It is crucial to note that the proposed transaction is planned to be executed through a Scheme of Arrangement, adhering to the provisions of section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended), and other applicable regulations.
PZ Cussons Nigeria (PZCN) has been on a commendable trajectory in terms of financial performance. The audited annual financial results for the period ending May 31, 2022, indicate substantial growth. The company recorded a profit before tax of N10.01 billion, a remarkable increase compared to the N3.19 billion recorded in the previous year.
After accounting for tax expenses of N3.3 billion, PZ Cussons Nigeria reported a profit of N6.7 billion, marking a staggering 276.43 percent increase compared to the N1.78 billion profit reported in 2021. As a result of this robust performance, the company declared a dividend of N4 billion, equivalent to N1.01 per ordinary share.
This strategic acquisition plan, if approved, holds the potential to reshape the ownership structure of PZ Cussons Nigeria Plc and enhance its position in the Nigerian consumer goods market.