PZ Cussons Faces Shareholders Backlash Over $34.3m Debt-To-Fairness Conversion Plan

Shareholders underneath the aegis of the New Dimensional Shareholders Affiliation have voiced sturdy opposition to PZ Cussons Nigeria Plc’s proposed $34.3m debt-to-equity conversion, describing the plan as unfair to minority shareholders and a transfer that leaves them marginalized.

PZ Cussons Nigeria Plc introduced its intention to transform a $34.3m mortgage owed to its dad or mum firm, PZ Cussons (Holdings) Restricted, into fairness.

This transaction would lead to a rise within the dad or mum firm’s stake within the Nigerian subsidiary from 73.27 % to 82.79 %.

In keeping with PZ Cussons Nigeria, the excellent mortgage of $34.26m (roughly N51.8bn) shall be transformed into fairness at a share value of N23.60 per share.

This value represents an 18 per cent low cost in comparison with the corporate’s present market value. The conversion will result in the issuance of two,194,716,637 new strange shares of fifty kobo every, thereby elevating the corporate’s share capital from N1.985bn to N3.082bn.

The corporate has scheduled an Extraordinary Normal Assembly (EGM) in Abuja on March 13, 2025, to debate and vote on the proposal.

President of the New Dimensional Shareholders Affiliation, Mr. Patrick Ajudua expressed his dissatisfaction with the plan in an unique interview with THE WHISTLER.

He criticized the transfer, stating, “This plan is a deliberate try and dilute the worth of our shares regardless of steady warnings from shareholders relating to the corporate’s monetary efficiency and the sale of property. The corporate now expects minority shareholders to bear the burden of its monetary losses.”

Ajudua additional lamented the deteriorating relationship between minority shareholders and the bulk shareholder, PZ Cussons (Holdings), asserting that the proposed transaction has eroded the belief that when existed between each events.

PZ Cussons has additionally confronted shareholder disagreements over its delisting provide value. Since November 2023, the corporate has made a number of makes an attempt to delist from the Nigerian Change (NGX).

Its preliminary provide of N21 per share was rejected by shareholders, prompting a rise to N23 per share, which was additionally refused. The Securities and Change Fee (SEC) additional sophisticated the corporate’s delisting plans by objecting to the provide.

Because the EGM approaches, minority shareholders are gearing as much as problem the proposal, emphasizing the necessity for equitable therapy and transparency within the firm’s monetary choices.