SEC declines PZ Cussons request to buy out other shareholders and delist

PZ Cussons Nigeria’s attempt to delist from the NGX has hit a roadblock as the Securities and Exchange Commission has declined the company’s request for its major shareholder, PZ Cussons (Holdings) to buy out other shareholders.

According to a corporate disclosure seen by Daily Trust, PZ Cussons (Holding) intended to buy the shares held by other PZ Cussons Nigeria shareholders at N23 per share.

However, the SEC declined the company’s request for “No Objection” to this move.

Reasons for SEC’s decline to the request were not contained in the statement signed by the Company’s Secretary, Olubukola Olonade-Agaga.

The statement read, “PZ Cussons Nigeria Plc hereby notifies the Nigerian Exchange Limited (NGX) and the investing public that 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 N23 per share.

“The Board will communicate further developments to shareholders in due course.”

In September 2023, the UK-based group, PZ Cussons (Holding) Limited announced moves to buy the remaining 26.73% shareholding of its Nigerian subsidiary, PZ Cussons Nigeria Limited held by minority shareholders at a price of N21 per unit.

The move effectively meant a delisting of PZ Cussons Nigeria from the NGX.

However, the shareholders rejected the offer price, with some of the shareholders claiming it was “unfair” to minority shareholders.

Speaking on the development, Mr Patrick Ajudua, the President of New Dimension Shareholders Association said: “Any amount below N100 per share is completely unacceptable to the Nigeria shareholders and will be resisted appropriately.”