Pz Cussons Share Discussion Threads

[philanderer] 02/1/2024 13:48

Good start to the new year :-(

[cfro] 15/12/2023 09:35

You might be right, that would be a good move..

[bedford1976] 14/12/2023 21:16

Personally I think the next move by PZ will be to sell the electricals business and the Wilmar joint venture

The business needs simplifying and getting control of Nigeria mensa they remove che non core distractions.

Another Child's Farm type purchase would be nice to see.

[petersinthemarket] 14/12/2023 13:18

Is that a gap to fill around 147p - time will tell.

[spoole5] 11/12/2023 15:48

I'd take 250 atm!

[petersinthemarket] 09/12/2023 12:58

interesting pov cfro - I'd certainly take 350p any day.

[essentialinvestor] 09/12/2023 09:16

cfro, keep in mind Unilever's stake in their Indian business. That alone is worth a significant chunk of the ULVR market cap.

[cfro] 09/12/2023 09:13

Well my opinion on valuation fwiw:

Peak valuation was once as high as £1.8bn.

My own personal opinion is that it has to be worth at the very least £1.5bn (or about 350p).

I like to compare with Unilever. I know, i know, it is just like comparing chalk with cheese as they are two completely different beasts but there are many similarities between the two nevertheless.

Unilever is valued at about £97bn ...thats Billion..

PZC is currently valued at £650m ...thats Million..

That's some disparity regardless of the fact that Unilever has many more powerful brands in it's portfolio. PZC still has a handful of powerful brands in it's.

I feel that if PZC could become more globally focused as Unilever is and if PZC continues to add to it's list of brands it owns (as it already has with Childs Farm) then it may, just may become a mini-Unilever perhaps? I would like to believe that it could..

[petersinthemarket] 07/12/2023 16:54

Growing rather strongly since I missed my boat. I must try harder. Has anyone any views on what true value could be. The situation in Nigeria is still not helping.
rgds
pete

[petersinthemarket] 04/12/2023 15:51

Missed the boat at c135p.
Tried to take a few this afternoon,
but ii says only 16 shares available!
Boy, that's a tight market.
pete

[darrin1471] 03/12/2023 21:37

I thought it interesting that a shareholder thought their shares were worth N100 vs the offer on the table of N23.

Looking at the forecasts for 2024 I see net debt is forecast to be about £60m at year end. Normally debt has been paid down at £20m pa, so the Nigerian devaluation looks like costing around £85m in cash terms. Has this been kitchen sinked or will that happen at H1 FY24 reported interim results on Wednesday 7 February 2024.

I hold no long or short position in PZC

[cfro] 03/12/2023 17:13

But can you blame PZ Cussons UK or should the blame be put on the Nigerian government/central bank for poor economic governance?

The buying out of the minority shareholders would not have come about otherwise..

[darrin1471] 03/12/2023 11:30

A disgruntled PZ Cussons Nigeria Plc shareholder from 06/09/2023 before the offer was raised from N21 to N23:

Reacting to the development, The President of the New Dimension Shareholders Association, Mr. Patrick Ajudua in an exclusive chat with Nairametrics noted that shareholders reject outrightly the proposed intention of PZ Cusson UK to buy out minority shareholders in Nigeria for a peanut of N21.
What he said
“It’s unfair, unjust, and means to shortchange minority shareholders. This is a company that has over the last 3 years been involved in asset stripping, they sold part of the factory land at Ikorodu to Friesland Campina for consideration of N2.12 billion and from there paid a dividend. 
The following year the company disposed of non-core assets with a consideration of N9.84 billion and from there also paid dividends. 
Therefore, the company has been involved in serial disposal of its assets, using part to pay shareholders as dividend rather than pay from operational profit, thereby planning their exit in phases,” he said.
Ajudua also noted that the deplorable state of corporate governance which resulted in the exit of three board members including the chairman and company secretary raises a great concern for shareholders.
“We call on the regulator to conduct an independent & forensic investigation into the affairs of PZ, its audited annual report & tax remittances to the appropriate govt agency.
As shareholders of PZ Cuson, we reject the proposed buyout of minority shareholders for N21.
Any amount below N100 per share is completely unacceptable to the Nigeria shareholders and will be resisted appropriately,” he said.

[darrin1471] 03/12/2023 11:23

Farrugia. From 23rd Nov statement:

Based on prevailing rates, the current Naira cash balance is equivalent to c. GBP80-100 million [3] . Assuming current market conditions persist, the Group aims to repatriate a further GBP30-50 million of cash by the end of FY24.

-- The proposed transaction to de-list and buy out the minority shareholdings of PZ Cussons Nigeria plc is progressing as planned. The Group welcomes the recent recommendation of the Board of PZ Cussons Nigeria to minority shareholders to accept a revised offer of 23 per share [4] and expects the transaction to complete before 31 May 2024. The purchase of the minority shareholdings will be funded from our local Naira cash balance.

[3] GBP80-100 million based upon NGN/USD rates of 1,000 and 1,200 which is the range within which US Dollars have been sourced during October and November and compares to a current official rate of approximately 800

[4] Equivalent to GBP25 million based on USD/GBP rate of 1.24 and an assumed NGN/USD rate of 800 which is the approximate current official rate

NGN/USD

[spooky] 24/11/2023 07:55

Farrugia the Nigerian currency more than halved between the year end date and the AGM statement.

[muzerewa] 23/11/2023 21:21

Not sure I get the question. I assume Naira cash holdings have gone down due to Nigerian Co paying off interco balances and dividends; meaning they haven’t only gone down in GBP terms due to currency devaluation

[farrugia] 23/11/2023 11:57

They did suggest that they’ve started to repatriate cash from Nigeria - yes but at what exchange rate? and why has this dropped

26th Sept statement:

'including cash and cash equivalents of just over £200 million denominated in Nigerian Naira.'

to

23rd Nov statement:

'Based on prevailing rates, the current Naira cash balance is equivalent to c. £80-100 million[3]'

[muzerewa] 23/11/2023 11:07

They did suggest that they've started to repatriate cash from Nigeria

[philanderer] 23/11/2023 10:44

A better trading update and more positive from Nigeria.

[cfro] 23/11/2023 09:32

I think the open question here is still are the current management team capable of unlocking the true potential of the brands or not..

[farrugia] 23/11/2023 07:22

26th Sept statement:

Balance sheet and cash flow

Adjusted net cash as of 31 May 2023 was £5.7 million (FY22: adjusted net debt of £9.8 million), including cash and cash equivalents of just over £200 million denominated in Nigerian Naira. The increase was driven principally by cash generated from operations of £76.6 million, £14.4 million proceeds received from the disposal of non-core assets in Nigeria, £11.8 million of interest received on principally Naira-denominated deposits offset by £29.4 million of dividends paid and a £19.3 million adverse foreign exchange movement. Net assets of £422.1 million compared to £448.9 million in the prior period as a result of the increase in currency translation reserve and reduction in retained earnings.

23rd Nov statement:

Based on prevailing rates, the current Naira cash balance is equivalent to c. £80-100 million[3]. Assuming current market conditions persist, the Group aims to repatriate a further £30-50 million of cash by the end of FY24.

Am i reading that right - from £200 million down to £80-100 million due to the Naira exchange rate?

But this doesn't tally: hxxps://www.xe.com/currencycharts/?from=GBP&to=NGN
The Naira hasn't fallen that much since 26th Sept?

[philanderer] 13/11/2023 14:03

The board of directors of PZ Cussons Nigeria Plc has increased the offer price for the planned buyback of the company’s shares from minority shareholders from N21 to N23 per unit.

The new offer was indicated in the latest update on the matter filed with the Nigerian Exchange Limited on Thursday.

[justiceforthemany] 12/11/2023 19:08

Should be seen as a positive in a fair and regulated market...

[philanderer] 01/11/2023 15:39

xd tomorrow morning for the 3.73p dividend

[bedford1976] 31/10/2023 12:32

Nigerian Governments has announced new FX rules that are going to boost the value of the Naira.
Hopefully PZ will be out of the woods by the end of the year if Govt Officials are correct.
Goes rx divi on the 2nd....