As expected GSK UK has pulled the plug on its planned acquisition of GSK Nigeria shares. I mentioned in some forum yesterday that the deal will certainly be off as I do not value the shares of the company as high as N60 per share. In addition, GSK UK has been embroiled in controversies lately following the bribery accusations in the UK. So, I guess the company has just had enough to deal with and certainly would prefer avoiding a PR disaster above any commercial interest. Here are excerpts of the report as culled from This day;
GlaxoSmithKline United Kingdom (GSK UK) has suspended plan to increase its stake in GlaxoSmithKline Consumer Nigeria Plc (GSK Nigeria) from 46.4 per cent to 75 per cent following complaints from minority shareholders who consider the deal unfavourable.
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said Monday that following consultations with its shareholders and relevant regulatory bodies, the proposal would be withdrawn at the meeting of today.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.