GlaxoSmithKline Consumer Nigeria Plc’s announcement that it would be ending operations there has angered some shareholders.
GSK said on Thursday that it would be ceasing operations in Nigeria.
The company, whose main business is the marketing and distribution of pharmaceutical and healthcare items for consumers, claimed that its parent company, GSK Plc UK, had announced its intention to stop selling its vaccines and prescription medications through its Nigerian subsidiary.
The business announced that it will brief its staff members, pledging to “Treat fairly, respectfully, and with care, while complying with all applicable legal and consultation requirements.”
The statement continued, “Board is aware that there will be numerous questions from shareholders. We have been working diligently with our professional advisors to decide on the next steps and we will soon submit a draft Scheme of Arrangement to the Securities and Exchange Commission, which, if approved, could result in shareholders other than GSK UK receiving an accelerated cash distribution and return of capital.
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Tony Omojola, the national coordinator of the Nigerian Independent Progressive Shareholders Association, responded to the situation by saying, “There is nothing we can do because of our economy. No shareholders are available to be contacted in order to purchase their shares.
“As minorities, we will reclaim our investment. This will reduce our investment portfolio and have an impact on market capitalization.
Bisi Bakare, the president of the Pragmatic Shareholders Association, bemoaned how the shutdown had increased unemployment in Nigeria.
We are not pleased about that, she remarked. In contrast to other corporations’ delisting practices, this is distinct. They continue to employ people even after they delist from the Nigerian Exchange, which benefits the country’s economy. The intention of GSK to leave Nigeria is a serious source of worry for investors.
“Their departure will increase the level of unemployment in our system. It makes me sad. It’s where they made their money. Why are they departing when we most need them? Nobody anticipates a corporation like GSK to say that now, especially given what is happening in the nation. Although we are aware of the unfavorable conditions, they are not the only participants in the system.
