The plan by the British majority owner of consumer goods company PZ Cussons Nigeria to fully acquire the organization and take it private has hit another roadblock as the Securities and Exchange Commission (SEC), a key regulator, has withheld the required permission to proceed with the transaction.
In an update filed at the Nigerian Exchange (NGX) Limited, PZ Cussons disclosed that the SEC did not accept the N23 per share offer made by PZ Cussons (Holdings) Limited to minority shareholders for the deal.
According to a statement signed by the company secretary, Ms Olubukola Olonade-Agaga, published on the NGX on Wednesday, the SEC has declined the company’s request for its approval of PZ Cussons (Holdings) Limited’s intention to acquire the shares held by all other shareholders of PZ Cussons Nigeria (PZCN) at an offer price of ₦23 per share.
This marks the second time the offer price of PZ Cussons has been rejected. Initially, in September 2023, PZ Cussons (Holdings) Limited proposed an offer price of N20 per unit, which minority investors reportedly dismissed.
Subsequently, about two months later, the offer price was raised by 15 per cent to N23 per share. However, the regulator also turned down this revised offer.
PZ Cussons aims to delist its shares from the local stock exchange. Its core investor seeks total control of the company’s equities as it transitions to private ownership.
Initially offering N21 per share in September, which was later raised to N23 per share in November, the company has faced resistance from minority shareholders and regulatory bodies.
The stock has experienced volatile price movements since the beginning of the year. It has been trading at N40 per share since March 8, following the board’s announcement that the shareholders’ fund or net worth had turned hostile after assets exceeded liabilities by N23.2 billion.
With the SEC withholding approval for the proposed acquisition, further developments regarding PZ Cussons’ plan to go private are awaited.
