Nestlé S.A acquires additional shares of its Nigerian subsidiary worth N774 million
In a notice issued by the Nigerian consumer goods giant, in compliance with the Nigerian Stock Exchange policy on insider dealing, Nestlé S.A, the parent company of Nigeria’s largest consumer goods company, Nestlé Nigeria, has increased its stake in its Nigerian subsidiary with the acquisition of shares worth N774 million.
According to the notice, Nestlé S.A, who is the majority shareholder of Nestlé Nigeria Plc with an ownership stake of 66.5% or 527,080,970 units of the total issued shares of the company (December 31st, 2020) – bought a total of 562,796 additional shares of its Nigerian Subsidiary, at a price of N1374.92 per share.
This puts the total purchase consideration for the shares of Nestlé Nigeria by the Swiss multinational at N773.8 million.
Dealings by insiders of listed companies are corporate actions to be disclosed by the management of the company.
This is in compliance with NSE’s policy on insider dealing, as the disclosure is key in the effort to ensure transparency and reinforce the trust of the investing public.
The purchase cements Nestle’s position as the majority shareholder of the company. Prior to the recent acquisition, Nestlé S.A spent a total of N3.02 billion to acquire 2,243,666 additional shares of Nestlé Nigeria Plc.
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