Nestle Nigeria gets funding from Switzerland investor after losing N203.7bn

Nestle Nigeria got new funding from Switzerland multinational food and drink processing conglomerate, Nestle S.A, in exchange for shares, as the foreign company moves to increase its controlling power within the Nigerian firm.

Nestle S.A disbursed over N304.28 million to purchase 232,011 shares, increasing the liquidity of Nestle Nigeria, at a time other shareholders were taking out their funds from the company, indicating lack of confidence in the firm’s growth.

According to Ripples Nigeria analysis, Nestle Nigeria share had crashed -16.4% year-to-date, on the back of massive sell off among the firm’s investors in the equity market, which is another source company’s use to raise funds, aside earnings on products and services, as well as loan.

Read also: Nestle S.A invests another round of capital into Nestle Nigeria

Nestle Nigeria stock had depreciated from N1,560, which it began the year with, to N1,303 per share as of August 24, 2022, with investors willing to sell at a lower price to take out their investment. The company lost a whopping N203.71 billion within eight months to the sell off.

As investors lose interest in Nestle Nigeria share, the dip in demand for its stock dropped the company’s market worth to N1.03 trillion, from N1.23 trillion between January to August 24.

Aside from the fresh funding, Nestle S.A’s controlling stake in Nestle Nigeria will increase from 69.95% to 69.98%. Majority of the over 554 million shares are held through Societe Des Produits Nestle S.A.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now