GlaxoSmithKline Consumer Nigeria Plc has announced that its Board of Directors have approved the binding offer to sell its drinks bottling and distribution business to Suntory Beverage & Food Nigeria Ltd.
The company has now recommended that its shareholders approve the offer
This announcement takes the company one step closer towards spinning off division that is said to contribute about 55% of the Company’s revenue
The company received a non-binding offer from Suntory Beverage & Food Nigeria Ltd. back in January 2016.
No timeline has been set as to when the deal will be completed as it will still require SEC approval after the Shareholders must have approved.
Rencap in an earlier report, projected that shareholders could reap as much as a 40% spike in the dividends payable by the company at the end of 2016 recommending a buy position for the stock