SEC and High Court Agree to GSK Plans to Buy Back Shares From Minority Shareholders

The Securities and Exchange Commission, in collaboration with the Federal High Court, has agreed to the move by Glaxo Smith Kline Consumer Nigeria Plc to acquire back its shares from minority shareholders.

This was revealed in a notice filed with the Nigerian Exchange Limited on Thursday.

It was reported by GSK in August last year that it was going to shut down its operations in Nigeria as it revealed that the parent company, GSK Plc UK, has agreed to halt the commercialisation of its prescription medicines and vaccines through its Nigerian subsidiary and transition to a third-party direct distribution model for its pharmaceutical products.

The company said that the regulatory approvals followed the court order in December, during which firm shareholders agreed on the proposed Scheme of Arrangement.

The minority investors of Glaxo Smith Kline Consumer Nigeria Plc agreed that their shares should be acquired at a rate of N17.42 per unit.

The Statement partly reads,

• GSK Consumer Nigeria, at this moment, notifies Nigerian Exchange Limited, our esteemed shareholders, and other stakeholders that the company has now received the Securities and Exchange Commission's formal approval of the scheme.

• The Federal High Court order sanctioning the scheme of arrangement has also been obtained.

It was also notified in the statement that an application to delist the company's shares from the NGX would soon be submitted.

Also, it has been reported that the company plans to exit the country as shareholders tell the government to strengthen the nation's economy and provide an enabling environment for businesses to thrive.

Aside from GSK plans, several multinational firms like Procter & Gamble, Jumia Food, Bolt Food, Sanofi & Aventi, and  Equinor have either shut down or announced plans to exit the country in 2023.

About GSK Nigeria

GSK Nigeria was founded in 1971. Over 46.4% of the company's shares are held by Setfirst Limited and Smithkline Beecham Limited; Nigerian shareholders have 53.6%.