Following consultations with its shareholders and relevant regulatory bodies, GlaxoSmithKline Plc and GlaxoSmithKline Consumer Nigeria PLC recently announced that they have agreed that the scheme of arrangement proposed to GSK Nigeria’s shareholders under which it was proposed that GSK would increase its indirect ownership in GSK Nigeria to 75%, has been withdrawn.
Subsequently, GSK Nigeria suspended the proposed scheme of arrangement, at the meeting of its shareholders held on Tuesday July 23, 2013 at the Muson centre, Onikan Lagos.
According to the Chairman Board of Director, GSK Consumer Nigeria Plc., Chief Olusegun Osunkeye, “GSK and GSK Nigeria believe that the withdrawal of the scheme of arrangement is necessary to consider appropriate amendments to the proposal”.
He further said that, GSK will continue consultations with shareholders and the Securities and Exchange Commission as to whether the proposal will be implemented by way of a tender offer or otherwise.
Also, as disclosed in the scheme document, GSK has announced its intention to dispose of its global Lucozade and Ribena brands. However, GSK have commenced work on the formalisation of updated long term arrangements that would allow GSK Nigeria to continue to distribute these brands in Nigeria and some West African countries. The company believes it is important that these arrangements are concluded and disclosed before any revised proposal is put to GSK Nigeria shareholders.
According to the National Coordinator, Independent Shareholders Association, Sir Sunny Nwosu, the board of GSK Nigeria has done well in reconsidering their position. ‘We want to thank the management and workers of GSK Nigeria for their efforts on this matter.
We believe the way things are going, GSK Nigeria will be sustained in Nigeria and will be a very good company that will continue to be admired by investors. We thank you and urge you to continue to be a listening board’, Nwosu said.
In the words of the chairman, ‘we wish to express our gratitude to all stakeholders including SEC, the NSE, shareholders and the press for your robust contributions and feedback during the past few months’. He concluded.
The general meeting was subsequently adjourned indefinitely.