PZ Cussons Nigeria (PCZN) failed to secure the 75% shareholder approval needed to convert a ₦51.79 billion intercompany loan into equity. Despite strong minority shareholder backing, key dissenting votes blocked the deal. The company remains focused on alternative restructuring to address financial challenges amid naira depreciation and foreign exchange volatility.
PZ Cussons Nigeria (PCZN) Plc has been unable to gain the necessary 75% shareholder approval to convert its outstanding ₦51.79 billion ($34.26 million) intercompany loan from its UK-based parent company, PZ Cussons Holdings (PZCH), into equity.
At the extraordinary general meeting (EGM) held in Abuja, 663 of 675 minority shareholders supported the proposal, but 12 dissenting shareholders—holding a significant stake—blocked the resolution. PZCH, as the majority shareholder, abstained from voting per regulatory requirements.
CEO Dimitris Kostianis expressed disappointment, highlighting that the conversion would have reduced foreign exchange exposure, strengthened the company's balance sheet, and freed up capital for sustainable growth. In response to shareholder concerns, PZCH had adjusted the terms to lessen dilution and maintain compliance with the 20% free float rule.
Despite PCZN’s strong operational performance, the continued depreciation of the naira has eroded its net equity, leaving it at a negative ₦34.5 billion as of November 2024. The company remains committed to exploring alternative strategies to restore financial stability and engage shareholders in future restructuring efforts.
