- One of Nigeria's top consumer goods companies, GlaxoSmithKline, which over the years has manufactured some of Nigeria's most popular medicines, is preparing to leave Nigeria
- The company's shareholders are not happy with the development and are demanding compensation
- The news of the company leaving has generated the interest of stock investors, helping shareholders make almost N1 billion in hours
GlaxoSmithKline Nigeria Plc, the Nigerian subsidiary of GSK Britain, on Thursday, August 3, 2023, announced a stop to doing business here.
The news of plans to close the operation raised strong interest in the company's shares listed on the Nigerian exchange as shareholders looked to negotiate compensation.
GSK Nigeria, in its statement released by Secretary Frederick Ichekwai, assured shareholders of return on investments and payment of principal after it sought approval from the Securities and Exchange Commission (SEC) for the shutdown of its operation.
The talks of compensation pushed the share price of GSK from N8.10 kobo on Thursday to N8.90 kobo on August 4 as stock investors look to benefit from the company's expected payout.
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Friday's N8.10 kobo share price was GSK’s highest level in four years.
Shareholders make millions
Amid the rush for GSK shares, Legit. ng analysis shows that the company’s shareholders earned N956.7 million from trading between Thursday and Friday.
This happened as GSK Nigeria’s market valuation increased from N8.84 billion when the operation closure was announced to N9.80 billion at the end o Friday.
Trading data from GSK Nigeria revealed that the last time its shares rose to N8.90 kobo per share was on July 5, 2019, when its stocks were traded at N10.20 kobo per share.
Further checks show that the jostling for GSK Nigeria’s shares raised the value of shareholder investments by 20.27% within one week.
Aliko Dangote loses over N1.4trn in hours after CBN's naira decision
Meanwhile, in another report, Nigerian billionaire Aliko Dangote's wealth has experienced a significant decline of N1.4 trillion following the devaluation of the naira.
The devaluation was triggered by CBN's move to unify the country's multiple exchange rate system.
Most of Dangote's investments, which are linked to his wealth, are based in Nigeria, and the performance of the naira directly affects his wealth.