GSK Consumer Nigeria Plc has announced the closure of its operations in Nigeria. This decision was communicated to the Nigerian Exchange Group through a statement released by the company through Friederick Ichekwai, company secretary.
The company said none of the options evaluated as alternatives to their replacement in Nigeria is worthwhile.
The announcement reads thus:
“In our published Q2 results we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products. The Haleon Group has also separately informed the Board of its intent to terminate its distribution agreement in the coming months and to appoint a third-party distributor in Nigeria for the supply of its consumer healthcare products.
“For the above reasons, and having, together with GSK UK, evaluated various other options, the Board of GlaxoSmithKline Consumer Nigeria Plc has 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 Board acknowledges the support of the GSK Group in its intentions to make this possible, full details of which we hope to publish shortly. In the meantime, however, 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 has three major shareholders. Setfirst Limited controls 27.31 percent stake in the company, followed by Smithkline Beecham Limited with 19.11 percent shareholding, and Stanbic Nominees Limited with 9.01 percent, bringing the total shareholding to 55.23 percent.
Revenue as of June 2023 was N7.75 billion, almost half of what the firm made in similar period in 2022, which stood at N14.81 billion.
Profit after tax at half year 2023 was N339.72 million, which was marginally below N349.35 million it realised at half year 2022.
GSK had 51 workers in its employ as of December 2022.
