GlaxoSmithKline Nigeria Plc (GSK) has received the approval of the Securities and Exchange Commission (SEC) and the Federal High Court to buy back its shares from minority shareholders and delist from the Nigerian Exchange Limited (NGX).
The company disclosed this in a notice filed with the NGX on Thursday, January 19, 2024.
GSK had announced in August 2023 that it would shut down its operations in Nigeria, following the decision of its parent company, GSK Plc UK, to cease commercialization of its prescription medicines and vaccines through its Nigerian subsidiary.
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The company said it would transition to a third-party direct distribution model for its pharmaceutical products in Nigeria.
As part of its exit plan, GSK proposed a scheme of arrangement to buy back its shares from the minority shareholders at N17.42 per unit.
The scheme was approved by the shareholders at a court-ordered meeting held on December 5, 2023.
The company said it had now received the formal approval of the SEC and the order of the Federal High Court sanctioning the scheme.
It added that it would soon submit an application for the delisting of its shares from the NGX.
The delisting of GSK is another blow to the Nigerian capital market, which has witnessed the exit of several multinational firms in recent years.
Some of the companies that have delisted or announced plans to delist from the NGX include Procter & Gamble, Jumia Food, Bolt Food, Sanofi & Aventi, and Equinor.
GSK Nigeria was incorporated in 1971 and has been listed on the NGX since 1979.
The company has two major shareholders: Setfirst Limited and Smithkline Beecham Limited (both incorporated in the United Kingdom), which hold 46.4 percent of the shares; and Nigerian shareholders, who hold 53.6 percent of the shares.
