PZ Cussons Nigeria Plc has unveiled plans to convert an intercompany loan of $34.26 million (₦51.8 billion) into equity, aiming to strengthen its financial position. The decision, announced following a board meeting on February 13, 2025, will be presented for shareholder approval at an Extraordinary General Meeting scheduled for March 13, 2025.
The move involves increasing the company’s share capital from ₦1.99 billion to ₦3.08 billion by issuing 2.19 billion new ordinary shares, each priced at ₦23.60—reflecting the company’s market value on February 12, 2025. The shares will be allotted to PZ Cussons (Holdings) Limited, the parent company, as part of efforts to reduce debt and enhance shareholder value.
To finalize the conversion, the company plans to amend its Memorandum and Articles of Association to accommodate the new capital structure. The board has also been authorized to seek necessary regulatory approvals and cancel any unallotted shares upon completion. This strategic move underscores PZ Cussons’ commitment to financial resilience amidst evolving market dynamics.
