The Ghana Stock Exchange (GSE) has approved the delisting of PZ Cussons from the stock market, following the review of offer documents to initiate the process.
At the end of the process, this will raise the total number of companies delisted from the bourse to six over the past three years – some voluntary, some enforced. This will reduce the number of companies listed on the bourse to 31.
In view of the approval, PZ Cussons has announced its tender offer to existing Qualifying Shareholders of the company to purchase fully the entire shareholding of each Qualifying Shareholder.
The Offer is priced at GHc 0.45 per PZ Cussons Share representing a 15.4 percent premium above the market price of GHS 0.39, which is the higher of the average 12-week market price and the market price on the annual general meeting date.
The process began with the opening of offer on July 6, 2020, and will close on August 17, 2020. Settlement would be made on September 4, 2020.
Currently, PZ Cussons has a total of 168 million shares issued on the bourse, with a total market capitalization of GHc 63.84 million.
In October 2019, PZ Cussons announced its intention to delist from the stock market following the unanimous approval of a resolution seeking to undertake the Offer and to De-List the Company from the Ghana Stock Exchange. Subsequently, shareholders of PZ Cussons also approved a resolution to undertake the Offer at the Company’s Annual General Meeting (“AGM”) held on 11 November 2019.
IC Securities (Ghana) Limited, is acting as sole financial adviser and sole sponsoring broker to PZ Cussons in respect of this Offer.
According to PZ Cussons Ghana, the proposed de-Listing is in line with the company’s plans to achieve operational efficiency, by providing management of the company more time and resources to focus on running and expanding the business, its distribution network and reach, thereby ensuring consumer satisfaction.