PZ Cussons Nigeria is looking to convert a $34.3 million debt to its parent group, PZ Cussons (Holdings) to equity. This will see the parent group increase its stake in PZ to 82.79 percent, from the current 73.27 percent.
PZ Cussons, in its explanatory statement, disclosed that the outstanding loan from its parent group stands at $34.26 million (approximately N51.8 billion). This debt will be converted into equity at a share price of N23.60 per share, representing an 18% discount to the company’s current market price. This conversion is expected to lead to the creation of 2,194,716,637 new ordinary shares of 50 kobo each.
This move will see PZ Cusson’s share capital appreciate to N3.082 billion, from the current N1.985 billion.