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Shareholders in the Nigeran business unit of soap maker PZ Cussons have rejected a proposal by the parent to convert a loan into shares.
The parent company had proposed conversion of the inter company loan into equity to reduce exposure to foreign exchange volatility and free up future cashflow for investment.
A total of 12 parties with a significant shareholding voted against the resolution, according to a statement made by the Nigerian unit to the stock exchange. A loan of just over $40 million given to the Nigerian unit in 2022 preceded the devaluation of the Naira the following year.
PZ Cussons put its African business under review last year. In March that year, Nigerian regulators had rejected the company’s proposal to buy out the 27% of its Nigerian arm that it didn’t own, in order to delist it.
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