The Securities and Exchange Commission (SEC) has rejected the request by the majority shareholder of PZ Cussons Nigeria Plc to acquire the stocks of the firm held by other shareholders at N23 per share.

PZ Cussons, which earlier announced its intention to exit the Nigerian market due to the rising cost of production and others, proposed to buy out the shares held by other investors of the organisation.

It filed an application to the SEC, which is the highest regulatory body in the Nigerian capital market, for approval, but this was not granted.

In an update filed at the Nigerian Exchange (NGX) Limited, PZ Cussons said the SEC did not accept the N23 per share PZ Cussons (Holdings) Limited offered minority shareholders for the deal.

“PZ Cussons Nigeria Plc hereby notifies the Nigerian Exchange Limited 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 intention to acquire the shares held by all the other shareholders of PZCN at an offer price of N23 per share (the proposed transaction).

“The board will communicate further developments to shareholders in due course,” a statement signed by the company secretary, Ms Olubukola Olonade-Agaga, said.

Business Post reports that this is the second time the offer price of PZ Cussons has been rejected.

In September 2023, PZ Cussons (Holdings) Limited put its offer price for the acquisition at N20 per unit, but the minority investors reportedly rejected this.

About two months later, this was raised by 15 per cent to N23 per share, representing “a premium of 35 per cent to the company’s share price of N17 on August 17, 2023, being the last traded price prior to the offer date,” but this has been turned down by the regulator.

PZ Cussons wants to delist its shares from the local stock exchange, and its core investor is looking to be in total control of the company’s equities as the firm goes private.

FreeStuffsNG:
According to a quote by Nairametrics “Any amount below N100 per share is completely unacceptable to the Nigeria shareholders and will be resisted appropriately.”

This explains why the share price of PZ is currently trading even above the offer price of N23. Same reason Oando shareholders rejected the N7.07 offer by Oando's OODP majority investor.

Now that SEC is protecting the interests of the minority shareholders, Oando shareholders should not demand anything less than N500 niyen.
God bless Nigeria for ever! Check my signature for free stuffs!

ClassicMan202:
First to comment 😄

PZ too wan Japa? Nobody is going anywhere.....

We must all face balablu together

Werey wey dey disguise

LordIsaac:
PART of the reasons why they are folding up is because the corrupt money and unregulated business environment they were hitherto enjoying is no longer feasible. Before you crucify me, check the word PART again!

Validated:

Godswillu:
My fear now is that they can declare bankruptcy since they have been making loss
and the minority shareholders may not get any Kobo

let both PZ and SEC reach an agreement so both parties can benefit

superlanny:
I was expecting this , PZ is not a viable company again and after posting those massive losses last month I knew the end was coming near. Nigeria is hell for investors and at the moment is like throwing money into fire, PZ is deep in debt and not making profits so why should SEC grant their request of majority shareholders to rip the minority by buying up their shares for cheap.

If they want to go private, they must pay through their noses.lol

It’s sad but I can predict PZ packing up and leaving soon if nothing changes in their current predicament. Unfortunately, thousands of jobs will be lost.

Validated:


What if PZ Holding (Nigeria) declares bankruptcy? The ordinary shareholders will get nada. In financial management, there is what is called "a bird in hand" theory. Imagine that SEC approved N17 in Sep 2023, would it not be more valuable than N23 of today?

All Nigeria shareholders should hold Tinubu accountable for their monumental losses. If another president was in AsoRock, Naira would not be so badly deprecited by over 400% as seen with Tinubu. A failure will also look for who to blame!

FreeStuffsNG:
According to a quote by Nairametrics “Any amount below N100 per share is completely unacceptable to the Nigeria shareholders and will be resisted appropriately.”

This explains why the share price of PZ is currently trading even above the offer price of N23. Same reason Oando shareholders rejected the N7.07 offer by Oando's OODP majority investor.

Now that SEC is protecting the interests of the minority shareholders, Oando shareholders should not demand anything less than N500 niyen.
God bless Nigeria for ever! Check my signature for free stuffs!

adioolayi:
Nice one by SEC



They don catch them...

Pose a massive lose Year On Year and force down share rates...

Then make move to buy the dips from every other shareholders...

The company will rebound with massive profits..shares go up and resell ..to make mad profits

Tricky wisdom