Nestlé S.A, Switzerland, the parent company of Nestlé Nigeria Plc, has increased its ownership percentage of the Nigerian subsidiary to 66.30 per cent.
With the recent purchase of 229,697 additional units in the shares of the company, and previous purchases from August 20 till date, amounting to 977,744 units, Nestlé S.A raised its majority shareholding in the Nigerian subsidiary.
Nestlé S.A spent about N1.17bn to buy shares of its Nigerian subsidiary in 22 days over three transactions.
The breakdown of the transaction, according to reports, showed that the purchase consideration for the 229,697 additional units of Nestlé Nigeria shares at an average price of N1,249.65 per unit is put at N287m.
Some operators in the Nigerian capital market told one of our correspondents that the recent purchase of additional shares by Nestlé S.A, Switzerland, the parent company of Nestlé Nigeria Plc, was expected and commendable.
Shareholders, under the aegis of Progressive Shareholders Association of Nigeria, said the company had the right to increase stake in the firm if minority shareholders were willing to sell since it was not crossing the threshold allowed by the regulators to remain a quoted firm.
The National Coordinator, PSAN, Boniface Okezie, in an interview, said Nigerian shareholders were willing to sell because of the economic hardships being witnessed in the country.
He said, “It is expected for the foreigners to take the holdings since Nigerian shareholders are offering to sell and no domestic investor has the ability to purchase.
“I don’t see it as a mission to take over the company; I believe it is a morale booster to the Nigerian company. The regulators are watching and they will react if they are crossing the threshold.”
Also reacting to the development, the Managing Director, Crane Securities Limited, Mr Mike Eze, said it was normal and obtainable in other climes.
Eze, however, advised the regulators to ensure that the minority shareholders are not cheated by making sure that all the procedures are followed.
“The rules and regulations of the market in this regard should be followed to ensure that the rights of minority shareholders are protected,” he said.
As of June 30, in line with the shareholding analysis of Nestlé Nigeria in its half-year financial results, the company had exactly 792,656,252 shares outstanding, with Nestlé S.A being the majority shareholder with 524,559,457 units, which amount to 66.18 per cent of the total shares of the company outstanding.
HEADLINES YOU MIGHT HAVE MISSED FROM BRAND SPUR
Waltersmith Petroman’s modular refinery has been completed and will begin operations on October 14, the Nigerian Content Development and Monitoring Board (NCDMB) has said.
Owning a business brand isn’t all required to make it big in the business world – it’s just the first step. To achieve business growth, you’d have to invest in activities that improve the quality of your products and services and make potential buyers aware that you have what they need.
Olam Cocoa has today announced the launch of Olam Cocoa for Professionals, a new business which will make its premium deZaan cocoa powders available to restaurants, caterers, and patisseries for the first time.
7Up bottling company is one of the leading trademarks that deals with beverages. It produces and distributes carbonated soft drinks such as 7up, Mirinda, Pepsi, Teem, Mountain Dew, H2oH!, Lipton Ice Tea and Aquafina premium drinking water.
Netflix, an American technology and media services provider and production company headquartered in Los Gatos, California, founded in 1997 by Reed Hastings.
In the just concluded week, total debt figure released by the Debt Management Office (DMO) showed that Nigeria’s total public debt stock for the second quarter of 2020 increased by 8.31% to N31.01 trillion as at June 2020 (from N28.63 trillion as at March 2020).
Fitch Ratings’ new interactive country-by-country map of bank rating trends shows that the balance of Outlooks globally has turned sharply negative since the onset of the coronavirus pandemic. The proportion of bank ratings on Negative Outlook or Rating Watch Negative (RWN) shot up to over 60% at end-1H20 from 13% at end-2019. The proportion on RWN was 10%, the highest in recent years, reflecting near-term risks to many banks’ ratings. There were virtually no ratings on Positive Outlook or Rating Watch Positive.