Nestlé Nigeria seeks approval to spin off waters business into JV with Platinum Equity
Nestlé Nigeria is seeking regulatory and shareholder approval to transfer its waters and premium beverages business into Peranel, a new 50:50 joint venture between parent company Nestlé S.A. and global investment firm Platinum Equity. The board met on October 28, 2026 to review management's report and approved pursuing the transaction, which requires clearance from the SEC, the Federal Competition and Consumer Protection Commission, and shareholders.
The restructuring will see Nestlé Nigeria's waters and premium beverages assets moved to a newly established company that becomes part of Peranel. The board reviewed three independent assessments—an asset valuation by Niyi Fatokun & Co., a business valuation by KPMG, and a fairness opinion from Deloitte—to evaluate the transaction terms. Nestlé clarified that its 68.3% stake in Nestlé Nigeria remains unchanged.
The move comes alongside strong nine-month results: pre-tax profit surged 51.5% to ₦193.88 billion, revenue grew 10.4% to ₦976.53 billion, and profit after tax rose 42.6% to ₦103.37 billion. Earnings per share climbed to ₦130.41 from ₦91.44, driven by improved gross margins and a 73% drop in net finance costs.
For shareholders, the key question is whether spinning off the waters business into a JV with a private equity partner unlocks more value than keeping it in-house. The fairness opinions from KPMG and Deloitte will be critical when the vote arrives. Will you support the carve-out if the valuations justify it, or push for the segment to stay within Nestlé Nigeria's core portfolio?