The board of directors at PZ Cussons Nigeria Plc has increased the proposed offer price for the buyback of shares from minority shareholders, upping it from N21 to N23 per unit.

This adjustment was disclosed in the latest update submitted to the Nigerian Exchange Limited on Thursday.

The initial announcement of the buyback was made in September when PZ Cussons Nigeria revealed that its majority shareholder, PZ Cussons (Holdings) Limited, intended to acquire shares held by other shareholders.

ALSO READ: Victor Boniface outshines Harry Kane to clinch Bundesliga player of the month award

Acting Company Secretary Olubukola Olonade-Agaga explained that the board, after careful consideration with advisers and an independent fairness opinion, decided to raise the offer price to N23 per share.

The statement also noted that the board believes the revised offer represents fair value for minority shareholders and recommended their approval.

The revised offer of N23 per share represents a 35% premium over the company’s share price of N17 on August 17, 2023, the last traded price before the offer date.

As of the market close on Thursday, PZ Cussons’ stocks were valued at N21.05 on the NGX.

The board emphasized the challenges the company faces in obtaining foreign currencies to settle trade debts and other obligations, highlighting its dependence on the PZ Cussons Group for financial support.

The buyback is intended to be executed under a Scheme of Arrangement in compliance with applicable rules and regulations.

ALSO READ: Dangote Group awarded ‘Most Valuable Brand’

Pending ‘No-objection’ from the Securities and Exchange Commission and a court order, the board has approved the convening of a general meeting for the company’s shareholders.

In the September notice, the company had said that the PZ Cussons Group believed that the transaction was necessary to simplify and strengthen operations in Nigeria, fostering a more agile and innovative business.