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 N2.61 billion.
According to a recent notice filed with the Nigerian Exchange Limited, the Swiss multinational firm bought an additional 1,870,348 units of Nestle Nigeria shares at a price of N1, 393 per share. This puts the total purchase consideration for the shares of Nestlé Nigeria by the Swiss multinational at N2, 605, 394, 76.
The recent transaction occurred in two tranches between 16th and 17th of August, 2021. The breakdown of the transactions is as follow;
- In the first tranche, Nestlé S.A purchased 339,471 units of the Nigerian subsidiary’s shares at a price of N1, 388.6476, amounting to N471, 405,589.4.
- In the second and last tranche which occurred on the 17th of August, the Swiss multinational firm purchased a further 1,530,877 units of the latter’s shares at a price of N1,399.1446, totaling N2,141,918,287.8
Recall that the Multinational firm had earlier in this month purchased 125,513 units of its Nigerian subsidiary shares, worth N175.2 million. The recent transaction further raises the stake of the parent company in its Nigerian subsidiary and is a demonstration of strong confidence in the opportunities that abound in the local consumer goods sector.
What you should know:
- As at 30th of June 2021, Nestlé S.A owns about 533,270,982 units of ordinary shares in Nestlé Nigeria Plc, translating to a majority shareholding of about 67.28%.
- Nestlé Nigeria Plc is currently trading at N1,387 per share on the floor of the Nigerian Exchange Limited (NGX).