GlaxoSmithKline Consumer Nigeria Plc’s unclaimed dividend of N1.274 billion has alarmed shareholders following the company’s delisting from the Nigerian Exchange Limited and termination of operations in the country.
According to The Punch, after more than 50 years of operation, GSK declared in August that it would cease operations in Nigeria and switch to a distributor-led model for product supply.
The president of the Pragmatic Shareholders Association, Bisi Bakare, stated that GSK ought to give their registrar access to all unclaimed dividends under their control. Since shareholders know that the registrar’s office is the place to go if they have problems with their shares or unclaimed dividends, they shouldn’t have any unclaimed dividends.
“We will receive confirmation from GSK that their registrar, Greenwich Registrars & Data Solutions Limited (formerly GTL Registrars), will retain unclaimed dividend funds.”
According to the Leader of Credible Investors, Dr. Anthony Omojola, the delisting corporation should retain a portion of the statute-barred cash, with the SEC overseeing the remaining amount through its own Trust Fund.
“It is noteworthy that despite my appointment to the Governing Board of Unclaimed Funds Trust Fund by the Federal Government, no action has been taken. Upon inquiry, I was informed that they are awaiting a visit from the current government to address the issue and issue a statement,” he wrote.
GSK disclosed in its September 2023 financial statements that its outstanding dividend was N1.274 billion (2022: N1.273 billion).
Omojola attributed the surge in unclaimed dividends in the country to “human failings.”
In the meantime, GSK Consumer Nigeria Plc was recently mandated by a Federal High Court located in Lagos to call a meeting with its shareholders to discuss its intentions to purchase their shares and delist from the NGX.
The Managing Director/Chief Executive Officer of Kapital Care Securities Ltd., Andrew Tsaku, enlightened the shareholders on the dividend payment process and what they needed to accomplish.
“Once a company declares a dividend, the said sum is transferred to and held by the registrars of that company, provided the registrars have their necessary details.
“Therefore, the registrar is in possession of any unclaimed dividends and will hold them until the shareholder(s) comes forward to make a claim for them, so whether GSK delists and exits Nigeria has no influence on the dividends. Consequently, there’s no need to worry because GSK is unable to claim any such amounts under any circumstances!”
However, he cautioned stockholders holding such or any other kind of stock to get in touch with the registrars and file a claim before the money becomes statute-barred, which often happens after a year or so of going unclaimed.
According to GSK’s most recent report, shareholders will get N17.42 per unit under the terms of the arrangement between the business and the holders of its fully paid-up ordinary shares of 50 Kobo each.
In the stock market, the amount of unclaimed dividends has increased recently.
The Securities and Exchange Commission disclosed at the most recent meeting of the Capital Market Committee that Nigeria’s unclaimed dividends had increased to N190 billion, or 7.35% more than N177 billion in 2021.
