SEC Blocks PZ Cussons’ Bid to Acquire Shares at N23 Per Share

The Securities and Exchange Commission (SEC) has dealt a blow to PZ Cussons’ ambitious bid to acquire shares from minority shareholders at a proposed price of N23 per share.

This rejection is a setback for the multinational consumer goods company’s plans to exit the Nigerian market amid escalating production costs and other challenges.

PZ Cussons Nigeria Plc had sought approval from the SEC, Nigeria’s apex regulatory body for the capital market, to proceed with its proposal to buy out shares held by other investors in the company.

However, the SEC declined to grant the necessary clearance for the transaction, effectively halting the acquisition process.

In an official update to the Nigerian Exchange Limited (NGX) and the investing public, PZ Cussons revealed that the SEC did not endorse the offer price of N23 per share put forward by PZ Cussons (Holdings) Limited, the majority shareholder.

This decision leaves PZ Cussons’ plans to delist from the local stock exchange in limbo, as the company’s core investor aims to take full control of its equities in a move towards privatization.

This is not the first time PZ Cussons has faced resistance to its acquisition offers. Previously, in September 2023, the company proposed an offer price of N20 per share, which was also rejected by minority investors.

Despite subsequently increasing the offer by 15% to N23 per share, SEC’s disapproval underscores the challenges PZ Cussons faces in executing its strategic objectives in the Nigerian market.

As shareholders await further developments, the SEC’s decision casts uncertainty over the future trajectory of PZ Cussons in Nigeria’s corporate landscape, raising questions about the viability of its exit strategy and the dynamics of shareholder relations within the company.