PZ Cussons 27% Cheaper, Still Above Offer Rejected by SEC
Investors can now buy PZ Cussons 27% cheaper after strong negative price movements. The risk off sentiment on the company became quite visible with rapid selloffs amidst its negative capital position. PZ Cussons market price fell to N27.75 per share on Friday, according to information obtained from the Nigerian Exchange platform.
The consumer goods producer was selling at 7 day highs of N38 following its unimpressive 9-month earnings release. Its 27% weekly price depreciation translates to N10.25 reduction. In March, its majority shareholders offered to buy its minority shareholders out at N23 per shares.
Its 3.970 billion outstanding shares were priced at N110.18 billion, according to stock market data tracked by MarketForces Africa analysts. PZ Cussons Nigeria Plc recently announced Securities and Exchange Commission response to its parent company offer to acquire shares held by other shareholders of PZ Cussons Nigeria.
Management hinted that Securities and Exchange Commission declined the Company’s request for its No Objection to its majority shareholders intention to acquire the shares held by all the other shareholders at an offer price of ₦23 per share.
Its market price had climbed as investors ramped up more shares which reset the market price. PZ Cussons Nigeria Plc posted more than N94.78 billion as net loss attributable shareholders, details from its unaudited 9-months 2024 financial statement revealed.
Of the sum, its parent company suffered about N86 billion while non-interest income owners was affected to the tune of about N9 billion.
The company’s bottom line plunged despite more than 27% year-on-year growth in revenue. According to its financial scorecard for the period, PZ Cussons revenue jumped to N110.627 billion from N86.997 billion at the end of 9-month 2023 results.
The large negative earnings dragged shareholders’ funds. According to the financial data, PZ Cussons capital has been wiped off, equity fund is currently N46.20 billion negative. Tight Bears Grip: NGX Tumbles as Investors Lose N761bn
