Nigeria Food and Nutrition Ex

RNS Number : 2256Y

PZ CUSSONS PLC

20 December 2010

 



20 December 2010

PZ Cussons Plc

(the "Group")

NIGERIA FOOD AND NUTRITION EXPANSION

PZ Cussons today announces plans to expand its presence in the food and nutrition category in Nigeria.

A food ingredients business is being established as a joint venture with Singapore based Wilmar International Limited, Asia's leading agribusiness group (see notes 1 and 2 below).

The intention is to develop a range of branded products including edible oils and nutritional spreads. The joint venture will secure the availability, quality and cost of the oil ingredients through the construction of a palm oil refinery in Nigeria, expected to be completed within two years.

PZ Cussons' share of the investment in the joint venture will be approximately US$27m (£17m) over two years. Following completion of the refinery, the joint venture is expected to be earnings enhancing in its first full year of trading.

Nutricima, the joint venture with Glanbia Plc which develops nutritional beverages for the Nigerian market, continues unaffected and independently of the new joint venture.

Notes

1. Wilmar International Limited is Asia's leading agribusiness group, and one of the largest listed companies by value on the Singapore Exchange with a market capitalisation of approximately US$29.5bn.

2. The joint venture with Wilmar will be through its wholly owned subsidiary Wilmar Africa Investments Pte Ltd. It will be structured as two joint venture companies: a branded products company to be held 51% by PZ Cussons and 49% by Wilmar and a palm oil refinery company to be held 51% by Wilmar and 49% by PZ Cussons. The joint venture is subject to clearance by the European Commission due to the size of the European businesses of both parties. Clearance is expected under the simplified procedure within 25 business days from notification, which is expected to be submitted shortly.

For further information contact:

PZ Cussons Plc                                                                        Tel: [phone]

Brandon Leigh - Finance Director

MHP Communications (Formerly Hogarth)                         Tel: [phone]

John Olsen / James White

 

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