Popular Swiss multinational food and beverage company, Nestlé S.A, has injected N484.9 million in the purchase of an additional 346,334 units of shares in its Nigerian Subsidiary (Nestlé Nigeria Plc).
According to a disclosure signed by the Company’s Secretary, Bode Ayeku, and made available on the website of the Nigerian Exchange Limited (NGX), the Swiss multinational purchased the additional units of 346,334 units at an average price of N1, 400 per share, totaling N484, 867,600.
Naijabusiness.com.ng gathered that this is not the first time that the multinational consumer goods giant will be investing in its Nigerian subsidiary. It made similar injections during the week, and most recently purchased about 900,887 units worth about N1.26 billion four days ago.
The sustained injection in its Nigerian subsidiary might be a strong indication that the firm believes in the potentials of the Nigerian consumer goods sector. It is of common knowledge that Investors are most likely to invest more in a place or business they strongly believe in.
It is pertinent to note that the latest transaction which took place on the floor of the Nigerian Exchange Limited (NGX), was carried out in two tranches on the 20th and 23rd of August, 2021 respectively.
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, totaling 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, totaling 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, totaling N484.9 million.
Why the reportage?
Naijabusiness.com.ng gathered that the disclosure is in line with statutory provisions of the Nigerian Exchange Limited (NGX), which demands that when a major shareholder or director of a publicly quoted company purchases or sells shares in the company they own, it must be fully disclosed to the Exchange and the public for clarity and transparency.
What you should know about Nestlé S.A: Nestlé S.A is the largest food company in the world, based on revenue and other metrics. It is a multinational food and drink processing conglomerate with headquarters in Vevey, Vaud in Switzerland. It was formed in 1905.
As at 30th of June, 2021, Nestlé S.A owns about 533,270,982 ordinary shares, representing 67.28% of Nestlé Nigeria Plc. The recent acquisition will further cement the position of Nestlé S.A as the majority shareholder in its Nigerian subsidiary.
As of the period of reporting this, Nestle Nigeria Plc is currently trading at N1400 per share on the floor of the NGX.