‘“We’re Unaware”: PZ Cussons Nigeria Reacts to Reports of Shutting Down Nigerian Operations
- PZ Cussons Nigeria has said it does not have complete information on the planned divestment from Nigeria
- The company disclosed that it would provide more clarity on the planned sale immediately after it is made public
- The PZ Cussons said it plans to exit Africa due to inflation in Nigeria and the naira devaluation
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
PZ Cussons Nigeria Plc has yet to receive a formal notice of divestment from its parent company, PZ Cussons Group.
Legit.ng reported that the consumer goods company plans to divest its African subsidiaries.
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PZ Cussons gives reasons for divestment
The firm disclosed that the sale will reduce its exposure to naira fluctuations.
The personal care products manufacturer disclosed that its board has received multiple interest in the sale.
TheCable reports that PZ Cussons Nigeria said it would clarify the planned divestment once additional information is received.
On Wednesday, September 18, 2024, PZ Cussons chief executive officer Jonathan Myers said that the company was facing unparalleled inflation and economic challenges, adding that the naira devaluation had significantly impacted its financials.
SEC rejects offers to sell minority shares
The announcement came six months after Myers said the firm was reviewing its brands and geographies due to Nigeria's macroeconomic challenges and complexities.
It disclosed that it was evaluating its brands after the Securities and Exchange Commission (SEC) rejected its request to acquire the minority shares in PZ Cussons Nigeria in March 2024.
Per the report, in September 2023, PZ Cussons disclosed an interest in buying the remaining 26.73% minority shares held in the Nigerian subsidiary at a price of N21 per unit.
As of May 31, PZ Cussons holds a 73.27% stake in the Nigerian subsidiary, representing 2.90 billion shares worth N45.53 billion as of September 18.
Another consumer goods giant to exit Nigeria after 140 years
Legit.ng earlier reported that PZ Cussons Plc said on Wednesday, April 24, 2024, that it had begun a strategic review of its African businesses to exit Africa, partly due to economic challenges in Nigeria. The company said its sales in Nigeria plunged by 48% due to the naira devaluation and inflation.
The CEO of PZ Cussons, Jonathan Myers, stressed the importance of looking towards the future while respecting the company’s past, stating that the review’s outcomes could include changes in ownership.
Reports say the company’s CEO said that in addition to the challenges of the exposure in Nigeria, the group is too complex for its size, with financial and human resources spread too thin to generate returns.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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