September 05, (THEWILL) – PZ Cussons Nigeria Plc (PZCN) has announced that its core shareholder, PZ Cussons (Holdings) Limited, intends to acquire the shares held by all other shareholders of the company at an offer price of ₦21 per share, subject to prevailing market conditions.
If the proposed transaction is approved and completed, the company will have zero free float and thus be delisted from the Exchange (NGX).
According to a statement by the company published on the website of the NGX Monday , the PZ Cussons Group explained that the action was necessary to enable them to simplify and strengthen operations in Nigeria.
It said this will create the foundations for the Nigerian business to deliver against its strategy, building a more agile and innovative business, and noted that PZ Cussons has been present in Nigeria since 1899 and expects Nigeria to remain an important market for the Group for many years to come.
Analysts at Proshare believe the reasons the company stated for its proposed buyout underscore the need for the Exchange to reevaluate its value proposition to quoted companies.
“Quoted companies should ordinarily have the advantage of visibility, innovation, liquidity, and strength supported by market conditions and guidance. This proposed delisting action lines up PZCN with peers like Oando and GSK, who have also put forth delisting plans.
“The effective delisting of these companies, coupled with Ardova Petroleum Plc’s recent delisting earlier in the year, potentially reduces the array of investment options available to investors in the market that has faced challenges in attracting new listings this year,” they said in a note Tuesday.
PZ Cussons was established in Nigeria in 1899 and listed on the Exchange in 1972.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
