Nestlé increases stake in Nigerian subsidiary purchasing shares worth US$1.9m

NIGERIA – Nestlé S.A, Swiss multinational food and drink processing company, has upped its stakes in its Nigerian subsidiary, Nestle Nigeria Plc, purchasing an additional 636,384 shares worth N747.54m (US$1.9m) as multinationals continued to tighten shareholding control on their Nigerian subsidiaries.

The deal follows Unilever Overseas Holdings B.V, the parent firm of Unilever Nigeria Plc, increasing its stake in the food and personal care products company, with the purchase of 17,023,490 ordinary shares at N12 per share.

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The purchase consideration for this transaction, is put at approximately N204.3 million (US$529,000).

The holdings company further consolidated its position with a fresh purchase of 67,094,382 shares at N12.5 per share, which amounted to N838.6m (US$2.17m).

Another company, Heineken, the majority shareholder in Nigerian Breweries has also increased its shareholding by 274, 542 shares despite the brewer experiencing challenges in growth due to low patronage of alcohol in Nigeria.

Heineken bought the shares at an average price of N35.67.

For the Nestle Nigeria deal, according to an insider transaction report signed by Bode Ayeku, company secretary, Nestlé S.A acquired 636,384 ordinary shares at N1,174.67 (US$3) per share, increasing its stake by 0.08%.

Based on its last financial statement, apart from Nestlé S.A, Switzerland, with 524,559,457 ordinary shares (representing 66.18%) and Stanbic IBTC Nominees Limited with 7.22%, no other shareholder held 5% or more of the paid-up capital of the Company as at 30 June 2020, indicates Nigeria Communications Week.

Nestlé Nigeria Plc recorded a revenue of N 141.0 billion (US$364m) for the period January to June 2020.

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The company reported a profit after tax of N 21.8 billion (US$56.28m) during the first half of 2020 representing a 16.84% decline.

Gross Revenue declined by -0.62% to N141.02bn (US$364m) from N141.90bn (US$366.54m) in the previous quarter.

Mauricio Alarcon, managing director of Nestlé Nigeria said, “These results illustrate the resilience of our company.

“Going forward, we will remain focused on three key priorities which include safeguarding the health and wellbeing of our people, ensuring business continuity to meet consumer needs and supporting our communities.’’

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