Emmanuel OchayiThe Nigerian Exchange Limited (NGX) has halted trading on GlaxoSmithKline Consumer Nigeria (GSK) Plc shares, marking a crucial step towards the company’s delisting.
The move, detailed in the weekly report, follows the approval of the Scheme of Arrangement between GSK and its shareholders by the Securities and Exchange Commission, coupled with the Federal High Court’s sanctioning of the arrangement.
The NGX’s decision to suspend trading, effective from January 22, 2024, aims to facilitate the update of the register of members for payment related to the Scheme consideration. This suspension aligns with the company’s plan to eventually delist from the exchange.
According to the NGX report, “The suspension was to prevent further trading on the shares of the Company given that the effective date of the scheme of Arrangement was Friday, 19 January 2024…”
GSK’s Board had earlier disclosed its receipt of formal approval from the Securities and Exchange Commission for the scheme of arrangement, leading to its delisting from the NGX.
The Federal High Court’s order sanctioning the arrangement was also confirmed. GSK Consumer Nigeria now prepares to submit an application for the delisting of its shares from the NGX.
This development unfolds as part of the broader context of GSK’s decision, announced in August 2023, to exit Nigeria and shut down its Nigerian subsidiary. Shareholders had previously approved a payment of N17.42 per share as part of the dissolution scheme. Notably, the scheme includes the cancellation of all outstanding shares and a premium settlement of N17.42 for each share held by existing shareholders, excluding GSK UK.
As the market awaits the imminent delisting application, GSK’s journey towards dissolution continues to draw attention, signifying a shift in Nigeria’s pharmaceutical landscape.
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