Shareholders under the aegis of the New Dimension Shareholders Association of Nigeria have commended the Securities and Exchange Commission (SEC) for rejecting the company’s request for its major shareholder, PZ Cussons (Holdings), to buy out minority shareholders and delist from the Nigerian Exchange Limited (NGX).
According to a corporate Notice by PZ Cussons (Holding), the board intends to buy the shares held by PZ Cussons Nigeria shareholders at N23 per share.
However, the SEC declined the company’s request for “No Objection” to this move.
Commenting on the capital market regulatory commission’s rejection of the listed firm’s request, the President of the New Dimension Shareholders Association (NDSA), Mr Patrick Ajudua, was quoted by Nairametrics, a leading online medium, as saying that the shareholders were excited about the news and clearly demonstrated the SEC’s commitment to safeguarding minority shareholders’ interest.
Specifically, the investment expert pointed out that the commission’s action underscored the importance of a strong collaborative effort between regulatory authorities in the capital market and shareholders to ensure the protection of investors.
Ajudua 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 meagre 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.”
While recalling that there has been a consistent inclination within PZ’s management to exit Nigeria just as it has been doing in Ghana where assets are being sold off over the past four years, he explained that they continued to receive substantial payments for global shared services, technical expertise, research and development support, and management fees.
The NDSA President also alleged that foreigners had been holding dominant positions within the company, such as GMD, CFO, Supply Chain Director, and Procurement Director while qualified Nigerians were being neglected.
Ajudua noted that the current foreign exchange (FX) losses availed the foreigner-dominated management of the company to pursue their agenda of exiting Nigeria.
He expatiated: “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,” the NDSA chief added.
