Nestlé S.A, a renowned Switzerland based consumer goods giant and parent company of Nestlé Nigeria, has increased its stake in its Nigerian subsidiary with the acquisition of shares worth N4.9 billion.
According to a recent notice signed by the Secretary of Nestle Nigeria, Bode Ayeku, and filed with the Nigerian Exchange Limited (NGX), the Swiss-based firm purchased an additional 3,520,974 units of shares in its Nigeria subsidiary, at a unit price of N1, 395 per share.
This puts the total purchase consideration for the shares of Nestlé Nigeria by the Swiss multinational at N4.91 billion.
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The breakdown of the deal which occurred on the floor of the Nigerian Exchange Limited (NGX) in Lagos showed that transaction took place in two tranches. In the first tranche, the parent company purchased 179,030 additional units of its Nigerian subsidiary shares at a unit price of N1400 per share, totaling N250.6 million. It subsequently followed this up with the acquisition of an additional 3,341,944 units of its Nigerian subsidiary shares, at a unit price of N1,390 per share, totalling N4.65 billion. The transactions occurred on the 15th and 16th of November 2021, respectively.
It is pertinent to note that dealings by insiders of listed companies are corporate actions to be disclosed by the management of the company. This is in compliance with NGX’s policy on insider dealing, aimed towards ensuring transparency and reinforcing the trust of the investing public.
Recall that as at 30th of June, 2021, Nestle S.A owned about 533,270,982 units of ordinary shares in Nestle Nigeria Plc., translating to about 67.28% of the latter’s total shareholdings. In a bid to strengthen its ownership and control in the company, the Swiss-based consumer goods giant have in recent times purchased additional shares in its Nigerian subsidiary.
As of press time, Nestle Nigeria Plc is currently trading N1, 390 per share on the local bourse. It is one of the five stocks worth over one trillion in market capitalization (SWOOT).