- GlaxoSmithKline has started its process to leave Nigeria, ending its 51-year existence in the country
- The British company's first step is to delist from the Nigerian stock exchange and has made an offer to shareholders
- GlaxoSmithKline is best known for the production supply of household brands like Panadol and Sensodyne
Legit.ng journalist Dave Ibemere brings over ten years of experience in financial, business, and technology reporting.
GlaxoSmithKline, a British multinational pharmaceutical company, has proposed a N17.4 pay-off package for each share to shareholders as it begins the process to leave Nigeria
The company disclosed this in a corporate filing submitted to the Nigerian Exchange obtained by Legit.ng.
GlaxoSmithKline said in the filing that it has received Securities & Exchange Commission’s ‘’No Objection’’ to propose a Scheme of Arrangement to shareholders for the dissolution of GSK’s business.
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The statement reads:
“Under the terms of the scheme, all of GSK’s outstanding shares will subsequently be cancelled. All the Company’s shareholders – except GSK UK (whose shares are held through its wholly owned subsidiaries, Setfirst Limited and SmithKline Beecham Limited) – will receive a total cash distribution of N17.42 per share for every share held in the Company."
GSK UK has opted to relinquish its portion of the cash distribution. GSK UK owns 555,081,925 Ordinary Shares of GSK, which Setfirst Limited and SmithKline Beecham Limited hold.
The proposed N17.42 per share far exceeds the N12.4 per share that the company’s stock traded on Friday which implies that the shareholders are receiving N5 premium.
GlaxoSmithKline move to leave Nigeria
According to the Q3 2023 interim financial statement, GlaxoSmithKline has yet to put up its assets for sale.
Part of the statement reads:
“As at the reporting date, the Group’s property, plant and equipment as well as investment property were not immediately available for sale in their present condition.”
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The deal to buy out the existing shareholders is said to be worth over N16 billion and this will turn the company from a public company to a private one.