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GSK UK Group has informed GlaxoSmithKline Consumer Nigeria Plc of its intent to cease commercialisation of its prescription medicines and vaccines in Nigeria.
The Company made this announcement via a filing signed by Company Secretary, Frederick Ichekwai which was sent to the Nigeria Exchange Limited (NGX) yesterday.
According to its unaudited HY 2023 financial statement, the company noted that it would appoint a local third-party direct distributor in Nigeria for the supply of its consumer healthcare products.
It said that having evaluated various other options, the Board of GlaxoSmithKline Consumer Nigeria Plc concluded that there is no alternative but to cease operations.
“Today, we are briefing our employees whom we will treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements. The Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on next steps and we will be shortly submitting to the Securities and Exchange Commission (SEC) a draft scheme of arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital,” the filing read.
It further acknowledged the support of the GSK Group in its intentions to make this possible while adding that details will be published in the meantime.
“’We cannot give you assurance of the final terms of any scheme, or that any scheme will be approved by the SEC or by shareholders. Shareholders are advised to seek professional advice and continue to exercise caution when dealing in the company’s shares until a further announcement is made,” GSK Group said.
