PZ Cussons looks to reorganize its business in Nigeria, offering to buy out minority shareholders of PZ Cussons Nigeria (PZCN) amid economic challenges in the country. The CPG conglomerate has made an offer to buy the remaining 26.73% of PZ Cussons Nigeria from minority shareholders for $28.8 million, with plans to delist the company from the Nigerian Stock Exchange.
Nigeria is the fourth most important market and the biggest in Africa for the group, who believes the transaction will significantly simplify and strengthen its business creating a sustainable structure and platform to maximize long-term growth and value in the market. Funding for the transaction is expected to come from existing Naira cash balances.
PZ Cusson's roots are African, founded in Sierra Leone in 1884. Today the CPG conglomerate is based in Manchester, UK, with operations in Europe, North America, Asia-Pacific, and Africa focused on four primary markets: the UK, Nigeria, Indonesia, and Australia. The company's core categories include hygiene, baby, and beauty.
Inflation has been in double digits since 2016 in Africa's largest economy, rising to its highest level in nearly two decades in July at 24.08% against 22.79% in June after the country scrapped a popular but costly subsidy on petrol and devalued the currency. PZ Cussons said in June that the devaluation of Nigeria's currency would adversely impact its profit next year.
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