In a significant development, the Nigerian government, represented by the Security and Exchange Commission (SEC), has given the green light to international giant GlaxoSmithKline Consumer Nigeria Plc (GSK) to delist from the Nigerian Stock Exchange (NGX).
This approval, conveyed through a formal notification to NGX, marks a pivotal moment for GSK Consumer Nigeria. The company revealed that it has also secured the Federal High Court’s endorsement for the proposed Scheme of Arrangement. As a result, GSK is set to imminently submit an application for the delisting of its shares from the NGX.
A noteworthy detail is that all GSK shareholders, with the exception of GSK UK (whose shares are held through its wholly owned subsidiaries, Setfirst Limited and SmithKline Beecham Limited), can anticipate a total cash distribution of N17.42 per share for every share held in the company. This development stems from a scheme of arrangement proposed by shareholders during a court-ordered meeting in December last year.
The groundwork for this momentous decision was laid out when GlaxoSmithKline Consumer Nigeria Plc officially notified the Nigerian Exchange Limited (NGX), shareholders, and other stakeholders of its receipt of the Securities and Exchange Commission (SEC) ‘No Objection’ to propose a Scheme of Arrangement for the dissolution of GSK’s business on November 2, 2023. Notably, the company had initially revealed its exit plan on August 3, 2023.
In essence, GSK’s imminent delisting from the NGX, coupled with the favorable cash distribution for shareholders, epitomizes a strategic corporate maneuver that is set to reverberate across the international business landscape.
