GlaxoSmithKline (GSK), a British pharmaceutical and biotechnology company, has announced its plan to exit Nigeria after 51 years of operation.
A statement by the Company Secretary, Fredrick Ichekwai, to the Nigeria Exchange Limited (NGX), hinted that the exit would be in the coming months.
The company said it resolved to exit Nigeria after its board meeting and evaluation of options with GSK UK and comes a few months after it decried the difficulty in accessing foreign exchange, which it said affected its supply of products to Nigeria.
The statement reads in part: “The board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations.
“The challenge in accessing currency is affecting our ability to maintain a consistent supply of medicines and vaccines in the market,” it said in an earlier statement.
GSK also informed the Exchange that it would appoint third-party distributors to supply medicines and healthcare products in Nigeria.
“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,” it said.
The pharmaceutical also assured that it would meet all legal requirements on the development with its employees and shareholders.
It advised shareholders to seek professional advice and exercise caution when dealing with the company’s shares until a further announcement.
“The Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on the 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,” it said.
GlaxoSmithKline Consumer Nigeria Plc was incorporated in Nigeria on June 23, 1971, and commenced business on July 1, 1972, under Beecham Limited, and later became quoted on the Nigerian Stock Exchange in 1977.
The board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations.
