Nestlé Nigeria Plc has moved forward with the proposed transfer of its waters and premium beverages business to a new entity that will become part of Peranel, the 50:50 joint venture being established by its majority shareholder, Nestlé S.A., and Platinum Equity.
The company's board, at a meeting held on October 28, 2026, approved the commencement of the process to obtain regulatory and shareholder approvals for the proposed transaction, following its consideration of management's report on the steps taken since the joint venture arrangement was announced on July 30, 2026.
Under the proposed Nigerian transaction, Nestlé Nigeria's existing waters and premium beverages business will be transferred to a newly incorporated company for adequate consideration. The new entity will subsequently become part of Peranel, which will house Nestlé's waters and premium beverages business under the proposed joint venture with Platinum Equity.
The proposed transfer is subject to approvals from the Securities and Exchange Commission (SEC), the Federal Competition and Consumer Protection Commission (FCCPC) and Nestlé Nigeria's shareholders.
In preparation for the transaction, Nestlé Nigeria obtained two separate asset valuation reports. Niyi Fatokun & Co prepared a valuation report on the business, while KPMG also undertook an independent valuation. Deloitte provided an independent expert fairness opinion on the proposed carve-out.
The board's decision to seek the requisite approvals follows its consideration of these valuation reports and the independent fairness opinion.
The transaction forms part of the broader arrangement between Nestlé S.A. and Platinum Equity to establish Peranel as a 50:50 joint venture for Nestlé's waters and premium beverages business. Nestlé Nigeria clarified that the proposed transfer will not affect or alter Nestlé S.A.'s shareholding in the Nigerian subsidiary.
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