PZ Cussons (Holdings) UK embarked on a mission on 4 September 2023 to acquire 1.06 billion shares from other stockholders at N21 per unit. The deal aimed to sell PZ Cussons Nigeria to core investors from Britain, but it faced obstacles when the Nigerian Securities and Exchange Commission (SEC) raised concerns about irregularities in the approval process.
According to sources familiar with the matter, the SEC identified flaws in the document submitted by PZ Cussons Nigeria, prompting the regulator to seek clarification. One of the main issues was the discrepancy in the proposed purchase price, which was significantly lower than the current market value.
Despite being notified to make corrections and respond to the SEC’s queries, PZ Cussons failed to address the deficiencies. This setback posed a challenge for CEO Dimitris Kostianis, who was tasked with overseeing the acquisition of minority shareholders’ stakes on behalf of PZ Cussons (Holdings) UK.
Initially, PZ Cussons (Holdings) UK offered to buy the shares at N21 per unit, with a subsequent review setting the price at N23 per unit. However, the deal ultimately fell through as the stock price surged to N40 per unit, rendering the offer unattractive to investors seeking a premium.
Despite facing financial challenges, including a significant foreign exchange loss, PZ Cussons Nigeria remains a valuable asset for the parent company. With a strong presence in Nigeria and a diverse portfolio of brands, the company has established a loyal customer base over its 125-year history.
Nigeria contributes a significant portion of PZ Cussons’ revenue, making it a key market for the group. While multinational competitors have exited the Nigerian market due to economic challenges, PZ Cussons remains committed to its operations in the country, reflecting its long-term investment strategy.
