In a significant development, PZ Cussons Nigeria Plc (PZCN) has unveiled a game-changing plan. The company’s holding entity, PZ Cussons (Holdings) Limited, intends to acquire all outstanding shares from its shareholders at an impressive rate of N21 per share.
More Details of the Plan
PZCN currently boasts 3,970,477,045 shares listed on the Nigerian Exchange Limited (NGX). Remarkably, 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.
Contingent Transaction: This significant move is, however, subject to approval by PZCN’s board, the company’s shareholders, and the necessary regulatory authorities. This information comes directly from the Ag.
Company Secretary, Olubukola Olonade-Agaga, during a statement made on the NGX floor.
Notable Comment
In her statement, Olonade-Agaga highlighted that PZ Cussons Group’s offer is motivated by the belief that this transaction is vital to streamline and strengthen its operations in Nigeria.
This according to Olonade-Agaga will also facilitate the effective execution of the company’s strategic plans. She also emphasized the Group’s commitment to fostering a more agile and innovative business environment.
Roadmap Ahead
- A general meeting of shareholders will be convened by order of the Federal High Court.
- All pertinent details of this Court Ordered Meeting, including the date, time, venue, and agenda, will be communicated to shareholders upon approvals from the Board, the Securities and Exchange Commission, and the Federal High Court.
- The terms and conditions of the Proposed Transaction will be comprehensively outlined in the Scheme Document, which will be dispatched to all shareholders before the Court Ordered Meeting.
- Further developments will be communicated to shareholders in due course. It is imperative for the Company’s shareholders and the public to exercise caution when dealing with PZCN’s shares until more information is provided.
The Execution Plan: The proposed transaction is expected to be executed via a Scheme of Arrangement, adhering to the provisions of section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended), and other applicable regulations.
Performance Snapshot: In a related note, the audited annual financial results for the period ending May 31, 2022, reveal remarkable profit growth driven by a substantial increase in revenue for PZ Cussons Nigeria (PZCN).
The company concluded the 2022 financial year with a noteworthy profit before tax of N10.01 billion, marking a substantial increase from the N3.19 billion profit before tax recorded in 2021.
After accounting for tax expenses of N3.3 billion, PZ Cusson Nigeria reported a profit of N6.7 billion, signifying a remarkable increase of 276.43 percent 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.
What Lies Ahead
As this groundbreaking transaction unfolds, it is expected to reshape the landscape of PZ Cussons Nigeria Plc.
Shareholders are poised to witness significant changes, which could potentially bolster the company’s operations.
Additionally, this move may attract more attention from investors, potentially driving share prices and enhancing the company’s financial standing.
The proposed acquisition is a strategic step that could lead to further innovations and market expansion for PZ Cussons.
As the process moves forward, shareholders can anticipate a more robust and dynamic company, with the potential for enhanced profitability and growth in the consumer goods sector.
