Saturday, November 21, 2020

Nestlé S.A buys shares of its Nigerian subsidiary worth ₦463.46 million in a week

Nestlé S.A has acquired 331,045 additional shares of its Nigerian subsidiary, worth ₦463.46 million over two transactions in a week.

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The largest consumer goods company on the Nigerian Stock Exchange (NSE), Nestlé Nigeria Plc, has notified the Exchange that Nestlé S.A.- its parent company, has acquired 331,045 additional units of its ordinary shares, worth ₦463.46 million over two transactions in a week.

The formal disclosure was made by the Company’s Secretary, Bode Ayeku.

Mr. Ayeku revealed that Nestlé S.A acquired the additional 331,045 units of Nestlé Nigeria Plc shares over two transactions, at an average share price of ₦1400 per share.

This put the total consideration for the shares purchased by the parent company at ₦463,463,000.00.

What this means

The purchase of the shares of Nestlé Nigeria further cements Nestlé S.A’s position as the majority shareholder of the company.

In line with the information contained in the financial statements of the company as of 30th September 2020, the company had exactly 792,656,252 shares outstanding, with Nestlé S.A being the majority shareholder with 525,537,201 units – 66.30% of the total shares of the company outstanding.

Hence, with the previous purchase of 214,924 additional units on November 10 and the recent 331,045 units acquired by the parent company, Nestlé S.A’s ownership percentage of Nestlé Nigeria is now put at 66.37%.

Why it matters

Dealings by insiders of listed companies are corporate actions to be disclosed, as required by the Nigerian Stock Exchange to aid transparency.

What you should know

Nestlé Nigeria’s shares closed the week at the end of trading activities on the Nigerian Stock Exchange, November 20, 2020, at ₦1400.00 per share, with a 52-week low of ₦764.90.

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