Following the ‘No Objection’ sought by multinational, PZ Cussons Nigeria PLC, to buy out minority shareholders and delist from the Nigerian Exchange, shareholders has commended the initiative made my Securities and Exchange Commission to reject the decision.
From the news gathered, the shareholders commended the Securities and Exchange Commission for protecting the interest of business.
Moses Igbrude, the National Coordinator of the Independent Shareholders Association of Nigeria, hailed the SEC’s refusal, saying it sent strong signals to the market following the wave of delisting in the capital market.
“It is the right to do. With this action taken by the SEC, a message is sent to the market that it is not business as usual, where everything goes. Where there are challenges the stakeholders of the business should sit and find solutions, buying off minority shareholders is not the only way.
“SEC is living up to its responsibility. A capital market where the minority shareholders are not protected cannot prosper. We are happy with SEC’s decision.”
Meanwhile, Boniface Okezie, the National Coordinator of the Progressive Shareholders Association of Nigeria, hailed the securities Exchange Commission for rejecting PZ Cusson’s request, saying, “It is a commendable one.”
The Chairman of the Ibadan Zone Shareholders Association, Eric Akinduro, praised the SEC, saying, “If the request of PZ is approved, it will mean failure on the part of the regulator to protect the minority shareholders of PZ. The resolution to approve N23.00 as our cash consideration is an attempt to deprive us of our investment.
“Looking at the board and management of the company, they are not proactive enough to salvage the company. One of the characteristics of a proactive board is to see challenges before they become problems and for them to arrest or take decisive steps to challenge it.”
Olubukola Olonade-Agaga, the Company Secretary, PZ revealed that the SEC had objected to its plans to buy out minority shareholders on Wednesday.
Olonade-Agaga remarked, “PZ Cussons Nigeria Plc hereby notifies the Nigerian Exchange Limited and the investing public that the Securities and Exchange Commission has declined the company’s request for its No Objection to PZ Cussons (Holdings) Limited’s (“the majority shareholder”) intention to acquire the shares held by all the other shareholders of PZCN at an offer price of N23 per share.”
Also, David Adonri, the Vice Chairman of Highcap Securities, said that minority investors had been appealing to the management of PZ Cussons not to delist from the market.
He said, “Until last week, concerned investors were still engaging with the authorities of PZ in which the shareholders appealed passionately to the authorities of PZ not to delist or exit the country.
“They made far-reaching suggestions. If the authorities of PZ accept those suggestions, they can rebuild their business and rebuild their competitiveness in Nigeria and I also believe that their intention to delist and leave Nigeria is a panic measure.
“They are reacting to the reform policies that have affected their bottom line but sooner or later, the economy will adjust to the new price level.”
The Managing Director of Wyoming Capital, Tajudeen Olayinka, also stated that the management of PZ Cussons may be in talks with relevant authorities not to delist.
Tajudeen said, “They may likely be talking to them not to delist. If they can’t find any reason for them not to delist, with this (SEC’s refusal), they won’t be able to go ahead with the delisting but companies can do voluntary delisting.
“SEC may be giving them some conditions. The market is a free entry and free exit. Perhaps they want them to take additional steps. There may be other things that they are doing. Perhaps the price they are quoting.”
