Nestlé S.A, a renowned Swiss multinational food and beverage company, has invested an additional N484.9 million in shares of its Nigerian Subsidiary (Nestlé Nigeria Plc).
This is according to a notification signed by the Company’s Secretary, Bode Ayeku, and made available on the website of the Nigerian Exchange Limited (NGX).
According to the notice, Nestlé S.A acquired additional 346,334 units of Nestle Nigeria Plc shares at a price of N1, 400 per share. This puts the total consideration for the shares purchased by the parent company at N484, 867,600.
Additionally, it is imperative to note that the recent transaction which took place on the floor of the Nigerian Exchange Limited, were effected in two tranches on the following dates; 20th and 23rd of August, 2021.
Breakdown of the deal
- In the first tranche which took place on the 20th of August 2021, the parent company purchased additional 48,795 units of its Nigerian subsidiary shares at N1, 400 per share, totalling N68, 313,000.
- In the second and last tranche which took place on 23rd of August 2021, the firm purchased a further 297,539 units of shares at N1, 399.86, totalling N416,512,944.54
- In light of this, a total of 346,334 units of Nestle Nigeria’s share were purchased at an average price of N1, 400, totalling N484.9 million.
This disclosure is a regulatory requirement that must be reported to the Nigerian Exchange Limited (NGX), especially when a major shareholder or director of a publicly quoted company purchases or sells shares in the company they own. The move will further cement the position of Nestlé S.A as the majority shareholder in its Nigerian subsidiary (Nestlé Nigeria Plc).
As at the period of reporting this, Nestle Nigeria Plc is currently trading at N1400 per share.