At its Extraordinary General Meeting (EGM) on March 13, 2025, PZ Cussons Nigeria Plc shareholders voted against a plan to convert ₦51.7 billion in outstanding debt owed to its parent company, PZ Cussons Holdings Limited, into equity.
The plan was unable to obtain the necessary 75% shareholder approval, which prevented the conversion from proceeding. PZ Cussons Nigeria had sought the conversion as a means of resolving financial difficulties brought on by the devaluation of the naira and shortages of foreign exchange.
BrandSpur business and economy news desk reports that PZ Cussons’ negative net equity deteriorated to 34.5 billion despite a 42% year-over-year rise in revenue for the period ending November 30, 2024.
The company’s CEO, Dimitris Kostianis, commented on the advantages the proposal would have provided, saying: “We believe that there were strong benefits for the company and shareholders from the proposed transaction. By converting the intercompany loan into equity, the Company’s exposure to foreign exchange would have been significantly reduced, our balance sheet would have been strengthened, and future cash flow would have been freed up to be allocated to productive investments that support the Company’s profitable and sustainable growth ambitions. This would have established the basis for improving shareholder liquidity.”
Continuing, he expressed gratitude to shareholders for their involvement and gave them the assurance that the business is still dedicated to bringing its financial situation under control. PZ Cussons Nigeria will look into alternative solutions to repair its assets and promote sustainable growth, he continued.
