PZ Cussons to Sell Off African Subsidiaries

PZ Cussons Nigeria Plc (PZCN) said it has not received any formal notice of divestment from parent company PZ Cussons Plc.
PZ Cussons announced plans on Wednesday to sell some or all of its African subsidiaries.
The personal healthcare products manufacturer said the sale would reduce the company’s vulnerability to naira fluctuations.

PZ Cussons said its board of directors has received multiple parties interested in the sale.
PZCN said in a statement on Thursday that it would provide further information as more details become available about the planned divestment “The board of PZCN has not at this time received any formal notification or more detail on this matter from the parent company, and will make the necessary disclosures as and when it receives more information,” PZCN said.

On Wednesday, PZ Cussons’ chief executive officer (CEO) Jonathan Myers, said Nigerians are facing unprecedented inflation and economic hardship, adding that the devaluation of the naira has also significantly impacted the company’s financials.
PZ Cussons’ announcement comes six months after Myers said it was reviewing its brands and geographies in light of Nigeria’s macroeconomic challenges and complexities.
The CEO said the company was reviewing its brands following the Securities and Exchange Commission’s (SEC) rejection of PZ Cussons’ application to acquire a minority stake in PZCN in March.
In September 2023, PZ Cussons had expressed interest in purchasing the remaining 26.73 percent minority stake in its Nigerian subsidiary at a price of 21 naira per unit. As of May 31, PZ Cussons held a 73.27% stake in the Nigerian subsidiary, with 2.9 billion shares worth 45.53 billion naira as of September 18.