GlaxoSmithKline Consumer GSK UK Group Plc is set to Conclude its Operations in Nigeria, according to an Announcement.
GSK Nigeria conveyed this Decision through a Statement signed by its Company Secretary, Frederick Ichekwai, addressed to the Nigerian Exchange Limited (NGX) on Thursday.
The statement revealed that GSK Plc UK, its parent Company, has Communicated its Intention to discontinue the Commercialization of its Prescription of Medicines and Vaccines in Nigeria through its Nigerian Subsidiary.
The statement elaborated, “In our Q2 results disclosure, we Informed that the GSK UK Group has Conveyed to GlaxoSmithKline Consumer Nigeria PLC its Strategic plan to halt the Commercialization of its Prescription of Medicines and Vaccines in Nigeria through local GSK Operating Companies.
The Transition aims to establish a third-party Direct distribution model for its Pharmaceutical Products.
Additionally, the Haleon Group has separately notified the Board of its intention to terminate its distribution agreement in the upcoming months.
They plan to Appoint a third-party Distributor in Nigeria for supplying their Consumer Healthcare Products.
Considering these Developments, and following a comprehensive assessment of Alternatives in Collaboration with GSK UK, the Board of GlaxoSmithKline Consumer Nigeria Plc has determined that the only viable course is to cease Operations.”
Ichekwai continued, “Today, we are Initiating discussions with our Employees, ensuring that they are treated with Fairness, Respect, and care and that all Legal and Consultation requirements are met.
The Board recognizes that Shareholders will seek clarity; we have diligently worked with our Professional Advisors to determine the next steps.
We intend to submit a draft Scheme of Arrangement to the Securities and Exchange Commission (“SEC”) shortly.
This scheme, if approved, could result in Shareholders, except GSK UK, receiving an expedited cash distribution and Capital return.
The Board appreciates the GSK Group’s Support in Facilitating this potential outcome, and we aim to release Comprehensive details soon.
However, at this point, we are unable to provide final terms for any Scheme or assure SEC or Shareholder approval.
Shareholders are advised to seek Expert counsel and exercise caution while Trading in the Company’s Shares until further notice.”
