NIGERIA – Nestlé S.A, Switzerland, the parent company of Nestle Nigeria Plc and the majority shareholder of the company, has increased its stake in the Nigerian subsidiary through acquisition of additional shares.
According to a disclosure reported to the Nigerian Stock Exchange, Nestlé bought an additional 748,047 additional shares at an cumulative price of US$2.28 million from the bourse.
The share acquisition slightly increases the share ownership of the Switzerland based food processing company to 66.27%.
Insiders’ transactions involving both sales and purchases are often an indication of how shareholders perceive the company’s valuation.
It could also mean a possible capital raise or the majority shareholders strengthening their existing holdings.
In a similar move, Unilever Overseas Holdings B.V, increased its stake at its Nigerian subsidiary- Unilever Nigeria Plc- through the acquisition 17 million additional shares.
Prior to the acquisition of additional share, Unilever was already the single largest investor in the company controlling a colossal 70% of the company’s total shareholding.
Unilever Overseas Holdings B.V. is estimated to have spent around US$0.54 million in the share capital increase that was affected early in August this year.
Nestlé Nigeria PLC is one of the largest foods and beverage companies in Africa with a focus on the manufacturing, marketing and distribution of food products including purified water.
The company’s latest half-year financial report indicated that the food manufacturer achieved a gross revenue of US$369.59 million.
The company’s profits for the first half of 2020 stood at US$57.14 million.
Commenting on the half year 2020 results, Mauricio Alarcon, Managing Director of Nestlé Nigeria said: “These results illustrate the resilience of our company.”
Alarcon has since been promoted by Nestle to head the company’s operations in West and Central Africa.
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