Nestlé S.A ups its stake in Nestlé Nigeria, shells out N287 million for 229,697 units of shares

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Following in the footsteps of Heineken Brouwerijen B.V which purchased about 3.3 million additional shares of Nigerian Breweries, Nestlé S.A, Switzerland, the parent company of Nestlé Nigeria Plc, has also ncreased its stake in the Nigerian subsidiary with the purchase of 229,697 additional units in the shares of the company.

With the purchase of 229,697 additional units, and previous purchases from 20th August till date, which amount to 977,744 units, Nestlé S. A’s ownership percentage of Nestlé Nigeria is now put at 66.30%.

This was disclosed by the company in a notification sent to the Nigerian Stock Exchange, which was seen by Nairametrics.

The purchase according to the notification signed by the Company’s Secretary, Bode Ayeku, was made on floor of the stock exchange in a single transaction on 11th, September.

The breakdown of the transaction, shows that the purchase consideration for the 229,697 additional units of Nestlé Nigeria shares at an average price of N1,249.65 per unit is put at N287 million.

This purchase and previous purchases strengthen Nestlé S. A’s status as the parent company of the subsidiary. So far, the company has accumulated a total of 977,744 additional shares worth N1.165 billion since 20th August.

As of June 30th, in line with the shareholding analysis of Nestlé Nigeria in its half-year financial results, the company had exactly 792,656,252 shares outstanding, with Nestlé S.A being the majority shareholder with 524,559,457 units, which amount to 66.18% of the total shares of the company outstanding.

The purchase of the shares of Nestlé Nigeria by Nestlé S.A has reduced the volatility of the company share price, with the parent company consistently mopping up stray volumes on the bourse.

About the company

Nestlé Nigeria PLC is one of the largest foods and beverage companies in Africa, and the largest consumer goods company by market capitalization. Nestlé Nigeria Plc engages in the manufacturing, marketing and distribution of food products including purified water. It also exports some of its products to other countries within Africa.

It has three product segments: Food, Beverages, and seasoning. The Food segment engages in the production and sale of Cerelac, Nutrend, Nan, Lactogen and Golden Morn. The Beverages segment engages in the production and sale of Milo, Chocomilo, Nido, Nescafe and Nestlé Pure Life. While the seasoning segment engages in the sale of Maggi cubes.

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