The proposed restructuring will see the company transfer its waters and premium beverages operations to a new entity under Peranel, a joint venture between Nestlé S.A. and Platinum Equity, while its ownership structure in Nigeria remains unaffected……
Nestlé Nigeria Plc is taking steps to separate its waters and premium beverages operations from its existing business structure, seeking regulatory clearance and shareholder consent for a proposed transfer to Peranel, a joint venture established by its parent company and global investment firm Platinum Equity.
The company disclosed the development in a notice filed with the Nigerian Exchange Limited (NGX), informing shareholders and the investing public of the latest progress in the planned restructuring.
The proposed transaction follows the July 30, 2026 announcement by Nestlé S.A. and Platinum Equity that both parties had entered into an exclusive arrangement to establish Peranel, with each holding an equal 50% stake in the venture.
Under the arrangement, Peranel is expected to take over Nestlé’s waters and premium beverages business, with the Nigerian subsidiary now moving to secure the approvals required to implement the transaction locally.
Nestlé Nigeria disclosed that its board of directors convened on October 28, 2026, to examine a report from management detailing developments surrounding the proposed transaction.
The planned restructuring will involve transferring the company’s existing waters and premium beverages operations in Nigeria to a newly incorporated entity for appropriate consideration. The new company will subsequently become part of Peranel once the necessary approvals have been obtained.
The transaction is subject to clearance from the Securities and Exchange Commission (SEC), the Federal Competition and Consumer Protection Commission (FCCPC), as well as approval from Nestlé Nigeria’s shareholders.
Explaining the structure of the proposed deal, the company stated:
“In Nigeria, subject to the receipt of the requisite approvals of the Securities and Exchange Commission, the Federal Competition and Consumer Protection Commission and the shareholders, the proposed Transaction will involve the transfer of Nestlé Nigeria’s existing waters and premium beverages business for adequate consideration to a new company which will then become part of Peranel.”
After considering management’s submissions, the board authorised the pursuit of the required regulatory and shareholder approvals to advance the proposed transfer.
KPMG, Deloitte assess proposed transaction
To establish the financial value and determine the fairness of the proposed restructuring, Nestlé Nigeria’s board also examined three professional reports prepared by independent advisers.
The assessments comprise an asset valuation report from Niyi Fatokun & Co., a business valuation report prepared by KPMG, and an independent expert fairness opinion issued by Deloitte.
The reports form part of the company’s evaluation process, providing professional assessments of the assets and business involved in the proposed transfer, as well as the fairness of the consideration attached to the transaction.
Nestlé’s stake in Nigerian subsidiary unaffected
Despite the planned separation of its waters and premium beverages operations, Nestlé Nigeria clarified that the transaction will not result in any changes to its parent company’s ownership structure in the Nigerian business.
The company specifically maintained that the proposed arrangement “does not affect or alter the shareholding of Nestlé in Nestlé Nigeria.”
This means the proposed transfer concerns the company’s waters and premium beverages business rather than a change in the ownership of Nestlé Nigeria Plc itself.
The company added that it would communicate further developments to shareholders and the investing public in accordance with applicable regulatory and disclosure requirements.
Nestlé Nigeria’s profit before tax jumps 51.5% to N193.88 billion
The restructuring announcement comes shortly after Nestlé Nigeria reported a significant improvement in its financial performance for the nine months ended September 30, 2026.
The company’s profit before tax surged by 51.5% to N193.88 billion, compared with N127.96 billion recorded during the corresponding period of 2025.
Revenue also recorded an upward movement, rising by 10.4% from N884.54 billion to N976.53 billion, reflecting continued growth in the company’s business operations.
Profit after tax advanced by 42.6% to N103.37 billion, compared with N72.48 billion in the same period last year.
The company’s earnings per share equally improved, climbing to N130.41 from N91.44.
The stronger bottom-line performance was largely supported by improved gross margins and a substantial decline in net finance costs, which helped boost profitability despite the increase in revenue being comparatively moderate.
With the proposed transfer now awaiting regulatory and shareholder clearance, Nestlé Nigeria is moving towards implementing the local component of the broader restructuring of its waters and premium beverages business.
