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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