Following formal approval from the Securities and Exchange Commission (SEC) for its proposed scheme of arrangement, GlaxoSmithKline Consumer Nigeria Plc (GSK) has begun the process of delisting from the Nigerian Exchange (NGX).
The NGX announced the commencement of the delisting process after GlaxoSmithKline Consumer Nigeria (GSK Nigeria) Plc obtained approval from the SEC.
According to the Exchange, in a market bulletin dated January 23, 2024, GlaxoSmithKline Consumer Nigeria Plc’s trading in securities was fully suspended in preparation for its delisting.
The Exchange stated, “Following the approval of the Company’s application to delist its entire issued share capital from the Nigerian Exchange Limited (NGX), please be informed that the entire issued share capital of GSK was on Monday, February 5, 2024, delisted from the Daily Official List of NGX.”
In a prior announcement, it was disclosed that minority shareholders of the company would receive a total cash distribution of N17.42 per share for each share held.
GlaxoSmithKline UK, the owner of 555,081,925 Ordinary Shares of GSK, has chosen to waive its share of the cash distribution, showing support for the delisting process.
GlaxoSmithKline’s Exit from Nigeria
In August, GlaxoSmithKline UK made the decision to exit Nigeria’s pharmaceutical market after more than 51 years, citing challenges such as foreign exchange complexities, security concerns, and high operational costs.
The company intended to adopt a third-party distribution model to navigate these challenges and reshape its Nigerian presence.
It assured its 290 employees and shareholders that all necessary legal proceedings regarding their entitlements would be met.
