Nestlé S.A, Switzerland, the parent company of Nestlé Nigeria Plc, has increased its stake in the Nigerian subsidiary with the purchase of 125,463 additional units in the shares of the company.
This disclosure was made by Nestlé Nigeria Plc, in a notification issued and signed by its Company’s Secretary, Bode Ayeku.
The purchase which occurred in a single tranche, took place on the floor of the Nigerian Exchange Limited on 22nd of June, 2021. It is imperative to note that the 125,463 additional units of Nestlé Nigeria shares were purchased at an average price of N1, 400 per unit, totaling N175.65 million.
This recent transaction further strengthens the status of Nestlé S.A as the majority shareholder in its Nigeria subsidiary. Sequel to the recent transaction, the company has so far purchased a total of 269,910 additional shares worth N377.87 million in the last two days.
It is pertinent to note that the recent disclosure is in line with statutory requirements, aimed at entrenching transparency and boosting investors’ confidence in the market. Insider transactions are often a sign of how shareholders perceive a company’s valuation. It could also mean a possible capital raise or that the major shareholders are strengthening their existing holdings.
What you should know:
- Nestlé S.A had earlier reported the purchase of additional 144,447 units of Nestlé Nigeria Plc shares at a price of N1, 399.99 per share, worth N202.2 million.
Abubakar