PZ Cussons Nigeria Plc Announces an Increment in Share Buyback Offer to N23 per Unit

The board of directors of PZ Cussons Nigeria Plc has announced the increment of the offer price for the planned buyback of the company’s shares from minority shareholders from N21 to N23 per unit.

The firm new offer was indicated in the last update that was filed with the NGX on Thursday.

In September, PZ Cussons Nigeria announced that its majority shareholder, PZ Cussons, offered to acquire shares held by other shareholders.

Part of the statement signed by the Company Secretary, Olubukola Olonade-Agaga, reads,

• The Board of Directors of PZCN has duly considered the offer with support from its advisers and an independent fairness opinion, and following discussions with the core shareholder, the offer price has been increased to N23 per share.

• The Board is accordingly pleased to announce that it considers the offer to represent fair value for the minority shareholders and recommends that the minority shareholders approve the offer.

The offer price of N23 stands for 35% of the firm’s share price of N17 on August 17, 2023, being the last traded price before the offer date.

On the close of the market on Thursday, stocks at PZ Cusson’s were priced at N21.05 on the NGX.

PUNCH reports that the board also pointed out that it considered the offer in light of the challenges the company continues to face in obtaining foreign currencies to pay its trade debts and other creditors, and specifically its reliance on the PZ Cussons Group for financial support.

However, it is intended that the buyback will be implemented under a scheme of arrangement in line with applicable rules and regulations.

It was also reported that the board approved a general meeting to meet with the company’s shareholders pending a ‘No-objections’ from the Securities and Exchange Commission and an order by the Federal High Court to hold the meeting.