The UK firm has made the proposal to buy additional shares from Nigerian shareholders at N48 through a scheme of arrangement slated to be approved at a court-ordered meeting today in Lagos.
According to the company, the increase in its holding would facilitate more investment in GSK Nigeria. But the terms of the agreement were faulted by the minority shareholders who complained against the offer price who said the deal could lead to eventual delisting of the company from the Nigerian Stock Exchange (NSE).
Following the complaints, the Securities and Exchange (SEC) stepped in by directing that the price be reviewed upwards while GSK UK should not vote at the meeting.
However, company said Monday that following consultations with its shareholders and relevant regulatory bodies, the proposal would be withdrawn at the meeting of today.
The Managing Director, GSK Consumer Nigeria Plc, Chidi Okoro, said in a statement: “GSK as a company believes in fairness and transparency in all its processes, and we are committed to shareholder’s interest and the growth of the Nigerian economy.”
According to him, GSK believed that the suspension of the scheme of arrangement is necessary in order to consider appropriate amendments to the proposal.
“In line with this, GSK will continue consultations with shareholders and the Securities and Exchange Commission as to whether the proposal will be implemented by way of a tender offer or otherwise,” Okoro said.
He added GSK had commenced work on the formalisation of updated long-term arrangements that would allow GSK Nigeria to continue to distribute these brands in Nigeria and some West African countries.
“The company believes it is important that these arrangements are concluded and disclosed before any revised proposal is put to GSK Nigeria shareholders,” he said.
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