Shareholders under the aegis of the New Dimension Shareholders Association of Nigeria applauded the rejection of PZ Cussons’ bid to acquire shares of minority shareholders and delist from the NGX by the Securities and Exchange Commission.
In a corporate disclosure, PZ Cussons (Holding) intended to buy the shares held by other PZ Cussons Nigeria shareholders at N23 per share. However, the SEC declined the company’s request for “No Objection” to this move, according to nairametrics.
commenting on the development, the President of the New Dimension Shareholders Association, Mr. Patrick Ajudua, noted that the news of a rejection notice on an application for delisting was met with enthusiasm by shareholders, taking it as confirmation from the Securities and Exchange Commission’s commitment to protect minority shareholders.
Ajudua stated that the development underlines the importance of a strong partnership between regulatory authorities in the capital market and shareholders to ensure the protection of investors.
He said, “The management of PZ, represented by the majority holder PZ (UK), had attempted to discreetly disadvantage minority shareholders through a delisting payment offer of a meager N23, despite requests for a fairer offer of N40, reflecting the stock’s market value and considering the challenges faced by PZ shareholders, including inconsistent dividend payments and prevailing economic conditions.”
Ajudua pointed out that, as in Ghana, where assets have been sold off over the last four years, there is a consistent tendency within the management of PZ to exit Nigeria.
He noted, however, that they continue to receive substantial payments for global shared services, technical expertise, research and development support, and management fees.
In addition, to the detriment of qualified Nigerian workers, they have a controlling position in the company like GMD, Chief Financial Officer, Supply Chain Management, and Procurement Director.
Ajudua explained that the issue of foreign exchange losses created a better opening for the company to accomplish its agenda to exit Nigeria.
“Shareholders, recognizing the lack of sincerity in the management’s application, wrote to the regulator urging its rejection.
It is essential to emphasize our collective determination as shareholders of publicly traded companies to safeguard our interests and ensure equitable treatment,” he pointed out.
Recall, that AMbusiness reported that PZ Cussons Nigeria’s plan to delist from the NGX was declined by the Securities and Exchange Commission as the company requested for its major shareholder, PZ Cussons (Holdings) to buy out other shareholders.
