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‘We’ve not been informed’ — PZ Cussons Nigeria reacts to parent company’s divestment plans



PZ Cussons Nigeria Plc (PZCN) says it has not received any formal notification of divestment from PZ Cussons Plc, its parent company.

 

PZ Cussons on Wednesday said the company plans a partial or full sale of its African subsidiaries.

 

The manufacturer of personal healthcare products said the sale will reduce its exposure to naira fluctuations.

 

According to PZ Cussons, the board has received multiple interests for the sale.

 

In a statement on Thursday, PZCN said it will provide more information on the planned divestment once additional details are made available.

 

“The board of PZCN has not at this time received any formal notification or more detail on this matter from the parent company, and will make the necessary disclosures as and when it receives more information,” PZCN said.

 

On Wednesday, Jonathan Myers, PZ Cussons’ chief executive officer (CEO), said Nigerians are facing unprecedented inflation and economic difficulties, adding that the naira devaluation has also significantly impacted the company’s financials.

 

The announcement by PZ Cussons comes six months after Myers said the company was reviewing its brands and geographies over macroeconomic challenges and complexities in Nigeria.

 

The CEO said the company was reviewing its brands after the Securities and Exchange Commission (SEC) rejected PZ Cussons’ request to acquire the shares of minority shareholders in PZCN in March.

 

In September 2023, PZ Cussons had shown interest in buying the remaining 26.73 percent minority shares held in the Nigerian subsidiary, at a price of N21 per unit.

 

As of May 31, PZ Cussons holds a 73.27 percent stake in the Nigerian subsidiary, which represents 2.90 billion shares, worth N45.53 billion as of September 18.

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