PZ Cussons Nigeria Board Elevates Share Buyback Offer to N23, Deems it Fair Value

The board of directors at PZ Cussons Nigeria Plc has revised the offer price for the intended share repurchase from minority shareholders, elevating it from N21 to N23 per unit.

The updated offer was disclosed in the latest filing with the Nigerian Exchange Limited.

The majority shareholder, PZ Cussons (Holdings) Limited, had initially proposed the buyback in September.

According to the acting Company Secretary, Olubukola Olonade-Agaga, the board, with input from advisers and an independent fairness opinion, deemed the increased offer of N23 per share as fair value for minority shareholders.

This price tag reflects a 35% premium over the company’s share price of N17 on August 17, 2023.

The board emphasized the challenges faced in securing foreign currencies to settle trade debts, citing reliance on the PZ Cussons Group for financial support.

The buyback is set to follow a Scheme of Arrangement, contingent on regulatory approvals, with a general meeting awaiting SEC’s ‘No-objection’ and a Federal High Court order. PZ Cussons, established in Nigeria since 1899, views this transaction as a means to simplify and fortify operations in the country.