By Abdullahi Lukman
Nestlé Nigeria Plc is seeking regulatory and shareholder approval to transfer its waters and premium beverages business to Peranel, a joint venture equally owned by its parent company, Nestlé S.A., and global investment firm Platinum Equity.
The proposed restructuring will involve moving the existing business into a newly established company, which will subsequently become part of Peranel, subject to approvals from the Securities and Exchange Commission (SEC), the Federal Competition and Consumer Protection Commission (FCCPC) and shareholders.
The company disclosed this in a notice to the Nigerian Exchange Limited (NGX), shareholders and the investing public, following a board meeting held on October 28, 2026, to review developments surrounding the proposed transaction.
The board resolved to commence the process of obtaining the necessary regulatory and shareholder approvals after considering management’s report on the proposed business transfer.
As part of its assessment, the board reviewed three independent reports covering the transaction’s valuation and fairness. These included an asset valuation report by Niyi Fatokun & Co., a business valuation report by KPMG and an independent fairness opinion prepared by Deloitte.
Nestlé Nigeria said the proposed transfer would be undertaken for adequate consideration, adding that the restructuring would not affect or alter Nestlé S.A.’s shareholding in the Nigerian subsidiary.
The development follows an announcement on July 30, 2026, by Nestlé S.A. and Platinum Equity of an exclusive arrangement to establish Peranel as a 50:50 joint venture to manage Nestlé’s waters and premium beverages business.
Meanwhile, Nestlé Nigeria recorded improved financial performance in the nine months ended September 30, 2026, with profit before tax rising by 51.5 per cent to N193.88 billion from N127.96 billion recorded in the corresponding period of 2025.
Revenue increased by 10.4 per cent to N976.53 billion, compared with N884.54 billion in the previous year, while profit after tax grew by 42.6 per cent to N103.37 billion from N72.48 billion.
The company’s earnings per share also rose to N130.41 from N91.44, reflecting stronger profitability during the period.
Nestlé Nigeria attributed the improved earnings performance to stronger gross margins and reduced net finance costs.
The company said further updates on the proposed transaction would be communicated in line with applicable regulatory and disclosure requirements.
