PZ Cussons Nigeria Plc shareholders have voted against a proposal to convert ₦51.7 billion in outstanding debt owed to its parent company, PZ Cussons Holdings Limited, into equity.
The decision was made during the company’s Extraordinary General Meeting (EGM) on March 13, 2025.
The proposal failed to secure the required 75% approval from shareholders, preventing the conversion from going forward.
PZ Cussons Nigeria had sought the conversion as a way to address financial challenges caused by the naira’s devaluation and foreign exchange shortages.
Despite a 42% year-on-year increase in revenue for the period ending November 30, 2024, the company’s negative net equity worsened to ₦34.5 billion.
Commenting on the benefits the proposal would have brought, Dimitris Kostianis, the company’s chief executive officer, said:
“We believe that there were strong benefits for the company and shareholders from the proposed transaction. By converting the intercompany loan into equity, the Company’s exposure to foreign exchange would have been significantly reduced, our balance sheet would have been strengthened, and future cash flow would have been freed up to be allocated to productive investments that support the Company’s profitable and sustainable growth ambitions. This would have established the basis for improving shareholder liquidity.”
Kostianis thanked shareholders for their participation and assured them that the company remains committed to stabilizing its financial position.
He added that PZ Cussons Nigeria will explore other options to restore its assets and drive sustainable growth.
