GlaxoSmithKline Consumer Nigeria Plc has announced that it has received formal Securities and Exchange Commission approval for its proposed scheme of arrangement.
This will lead to minority investors getting a total cash payment of N17.42 per share for each share owned.
GlaxoSmithKline UK, a prominent pharmaceutical company, announced its pullout from Nigeria in August after more than 51 years of existence.
The company’s secretary, Frederick Ichekwai, confirmed this information in a statement filed with the Nigerian Exchange Limited on Thursday.
GSK added that a Federal High Court ordered a meeting on December 5 to discuss distributable profit to shareholders and other exit-related concerns. After the meeting, the firm stated that shareholders endorsed the proposed scheme of arrangement.
Minority shareholders in the company will get a total cash dividend of N17.42 per share for each share held.
GSK UK, the owner of 555,081,925 Ordinary Shares of GSK held by Setfirst Limited and SmithKline Beecham Limited, decided to forgo its portion of the cash distribution, among other benefits.
GSK claimed in a press release that, “GSK Consumer Nigeria hereby notifies Nigerian Exchange Limited, our esteemed shareholders, and other stakeholders that the Company has now received Securities and Exchange Commission’s formal approval of the Scheme.”
“The federal high court’s order authorizing the plan of arrangement has also been obtained.
“An application for the delisting of the Company’s shares from the NGX will be submitted imminently.”
GlaxoSmithKline UK announced its pullout from Nigeria in August after more than 51 years of operations due to obstacles such as foreign exchange complexity, security concerns, and high operating expenses.
It did, however, ensure its over 290 employees and shareholders that all legal actions related to their claims will be completed.
GSK Nigeria said it is working with its consultants to decide the next steps and plans to submit a scheme of arrangement to the Securities and Exchange Commission. If authorized, the program will permit the return of capital to shareholders, with the exception of its parent company, GSK UK.
