GSK Consumer Nigeria Plc gets SEC, court approval for share buyback, delisting
The Securities and Exchange Commission (SEC) and the Federal High Court have granted approval to Glaxo Smith Kline Consumer Nigeria Plc for its share buyback plan and subsequent delisting from the Nigerian Exchange Limited (NGX).
In an official statement, GSK Consumer Nigeria Plc announced the regulatory approvals, signaling a significant step in the company’s exit strategy.
The plan to buy back shares from minority shareholders and eventually delist from the NGX has been met with shareholder reactions and concerns over the trend of multinational companies departing from Nigeria.
GSK Consumer Nigeria Plc, in the statement, notified the Nigerian Exchange Limited, shareholders, and stakeholders of the formal approval of the scheme by the Securities and Exchange Commission.
The court’s order sanctioning the Scheme of Arrangement has also been obtained, setting the stage for the company to proceed with the delisting process.
GSK Consumer Nigeria Plc indicated that it would soon submit an application for the delisting of its shares from the NGX.
The decision by several multinational firms to shut down operations or announce plans to exit Nigeria has sparked discussions and raised concerns among shareholders and the public.
GSK Nigeria, incorporated in 1971, has 46.4% of its shares held by Setfirst Limited and Smithkline Beecham Limited (both based in the United Kingdom) and 53.6% by Nigerian shareholders.
The broader implications of such exits, coupled with GSK’s move, highlight the challenges faced by the Nigerian business environment and the need for measures to retain and attract businesses to contribute to the country’s economic growth.
