After 51 years in Nigeria, GSK will close its doors.
After 51 years of business in Nigeria, GlaxoSmithKline (GSK), a British multinational pharmaceutical and biotechnology corporation, has declared plans to leave the country.
“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,” GSK Nigeria Plc said in a statement obtained by Naijaecho.
It went on to say, “The Haleon Group has also separately informed the Board of its intention 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.”
“The Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations,” GSK Nigeria said in an official statement signed by Frederick Ichekwai, its corporate secretary.
“Today, we are briefing our employees, whom we will treat fairly, respectfully, and with care, while meeting all applicable legal and consultation requirements,” the business stated.
Is GSK about to leave Nigeria?
The business stated that its board is aware that investors will have a lot of questions. “We have been working assiduously with our professional advisors to agree on next steps and we will be submitting to the Securities and Exchange Commission (SEC) shortly a draft Scheme of Arrangement which, if approved, may see shareholders other than GSK UK receive an accelerated cash distribution and return of capital,” the company said.
The Board welcomes the GSK Group’s assistance in achieving this goal, the full details of which we aim to announce soon. However, we are unable to guarantee the specifics of any scheme’s ultimate conditions or that it would be accepted by the SEC or shareholders in the meantime, according to GSK.
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Additionally, it stated that “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.”
On June 23, 1971, GlaxoSmithKline Consumer Nigeria Plc was established in Nigeria. Beecham Limited was the company’s original name when it first opened for business on July 1, 1972. The company’s headquarters are at 1 Industrial Avenue in Ilupeju, Lagos.
In 1977, the Company began trading on the Nigerian Stock Exchange. A state-of-the-art beverage factory was built at Agbara Industrial Estate, Ogun State, in 1982 to help us develop our activities there. Since then, the facility has been expanded to include factories that produce wellness and oral healthcare (OHC) goods.
In keeping with our dedication to ongoing development, we frequently upgrade our facilities to satisfy our customers’ rising expectations.
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Source:BusinessDay