The Securities and Exchange Commission (SEC) has halted PZ Cussons Nigeria’s attempt to acquire the company fully and take it private. This marks the second regulatory setback for the organisation’s acquisition plan.
PZ Cussons (Holdings) Limited had proposed to buy out minority shareholders at N23 per share and delist from the Nigerian foreign exchange market. The SEC’s refusal, disclosed in an update filed at the Nigerian Exchange (NGX) Limited, denies the necessary assent to proceed with the transaction. The reasons for the SEC’s decline to the request are currently unclear.
The statement signed by the company’s secretary, Ms Olubukola Olonade-Agaga, stated:
“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 board will communicate further developments to shareholders in due course”.
The regulator remained unconvinced despite the company’s efforts to gain approval, including a previous offer at N20 per share. PZ Cussons’ intention to delist from the local stock exchange hinged on gaining total control by acquiring all outstanding shares.
SEC’s rejection comes amidst financial challenges for PZ Cussons Nigeria, compounded by a reported £88.2 million foreign exchange loss attributed to the devaluation of the Nigerian naira. With uncertainties surrounding the acquisition and financial performance, shareholders await further developments from PZ Cussons.
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