PZ Cussons Nigeria Plc (PZCN) has revealed its parent company, PZ Cussons (Holdings) Limited, intends to acquire all outstanding shares from PZCN shareholders at a rate of N21 per share. Currently, PZCN has 3,970,477,045 shares listed on the Nigerian Exchange Limited (NGX).
As of May 31, 2022, no single shareholder, apart from the UK-based Holdings, holds more than five percent of the Group’s paid-up capital.
PZ advances plan to strengthen Nigerian operations
This proposed transaction is subject to approval by PZCN’s board, the company’s shareholders, and the necessary regulatory authorities, as stated by Olubukola Olonade-Agaga, Ag. Company Secretary of PZCN.
The move is driven by PZ Cussons Group’s belief that the transaction is crucial to streamline and strengthen its operations in Nigeria and effectively execute its strategic plans.
It aims to foster a more agile and innovative business environment.
The proposed transaction will require the company to convene a general meeting of its shareholders by an order from the Federal High Court.
Details of this meeting will be communicated to shareholders once the necessary approvals are obtained.
The transaction will be executed via a Scheme of Arrangement, following the provisions of section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended), and other applicable regulations.
The audited annual financial results for the year ending May 31, 2022, reveal significant profit growth for PZ Cussons Nigeria.
The company reported a profit before tax of N10.01 billion, a substantial increase from the N3.19 billion recorded in 2021.
After tax expenses of N3.3 billion, PZ Cussons Nigeria reported a profit of N6.7 billion, marking a 276.43 percent increase compared to the N1.78 billion reported in 2021.
Consequently, the company declared a dividend of N4 billion, equivalent to N1.01 per ordinary share.