SEC Rejects PZ Cussons’ Request to Buy Out Shareholders and Delist from NGX

The Securities and Exchange Commission (SEC) has declined PZ Cussons Nigeria’s request for its major shareholder, PZ Cussons (Holdings) Limited, to buy out other shareholders and delist the company from the Nigerian Exchange Limited (NGX).

The SEC’s decision has left the future of the company’s delisting uncertain, as the reasons for the decline were not disclosed in a corporate disclosure signed by the company’s Secretary, Olubukola Olonade-Agaga.

PZ Cussons (Holdings) Limited had previously proposed to acquire the shares held by other shareholders of PZ Cussons Nigeria at an offer price of N23 per share.

However, this proposal faced opposition from minority shareholders, who deemed the offer price to be “unfair” and demanded a higher amount.

In September 2023, the UK-based group, PZ Cussons (Holdings) Limited announced its intention to buy the remaining 26.73% shareholding of its Nigerian subsidiary, PZ Cussons Nigeria Limited, held by minority shareholders.

This move would effectively delist the company from the NGX. However, the shareholders rejected the offer price of N21 per unit, with some claiming it was “completely unacceptable.”

The President of the New Dimension Shareholders Association, Mr Patrick Ajudua, stated that “Any amount below N100 per share is completely unacceptable to the Nigeria shareholders and will be resisted appropriately.”

The SEC’s decline to grant “No Objection” to PZ Cussons’ request has left the company’s delisting plans in limbo.

It remains to be seen whether the company will revise its offer or pursue alternative strategies to achieve its delisting goals.

As the situation unfolds, the investing public and shareholders of both PZ Cussons Nigeria and PZ Cussons (Holdings) Limited will be closely monitoring developments.

The outcome of this case could have significant implications for future delisting attempts and minority shareholder rights in Nigeria.