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Shareholders of PZ Cussons Nigeria are pushing back against the company’s plan to delist from the Nigerian Exchange (NGX), despite a troubling net loss of N76 billion for the financial year ending May 2024.

The company’s negative equity of N27.5 billion has raised concerns, but shareholders, including those from the Independent Shareholders Association of Nigeria (ISAN), remain firm in their stance that delisting is not the answer.

Moses Ibrude, ISAN’s national coordinator, believes PZ Cussons can recover by raising capital from the market instead of exiting.

Similarly, Boniface Okezie of the Progressive Shareholders Association accuses the company of attempting to avoid rewarding investors and calls the proposed N23 per share buyout offer “unacceptable.”

Many shareholders believe that a fairer price would be closer to N50 per share if the company insists on delisting.

The opposition from shareholders has already delayed PZ Cussons’ delisting plans, with the Securities and Exchange Commission (SEC) rejecting the current proposal.

Meanwhile, the company has announced that it is considering other options, including equity issuance and asset sales, to resolve its negative net asset position.

Like other Nigerian manufacturers, PZ Cussons has been hit hard by foreign exchange losses, leading to negative margins.

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