The Nigerian Exchange Limited (NGX) has suspended trading on the shares of Glaxo SmithKline Consumer Nigeria (GSK) Plc for eventual delisting from the Exchange.
This was contained in the weekly report of the Exchange seen by Nairametrics.
The suspension followed the approval of the Scheme of Arrangement Glaxo SmithKline Consumer Nigeria Plc between the company and holders of its fully paid ordinary shares by the Securities and Exchange Commission and sanctioning of the Scheme of Arrangement by the Federal High Court.
Registrars to update the register of members for payment
According to the report, the suspension was to enable the Registrars to update the register of members for payment of the Scheme consideration and eventual delisting of the Company from the NGX.
The report reads:
- “Trading Licence Holders are hereby notified that following the approval of the Scheme of Arrangement Glaxo SmithKline Consumer Nigeria Plc (the Company) between Glaxo SmithKline Consumer Nigeria Plc and holders of its fully paid ordinary shares by the Securities and Exchange Commission and sanctioning of the Scheme of Arrangement by the Federal High Court, trading in the Shares of the Company was suspended on the Nigerian Exchange Limited on Monday, 22 January 2024.
- 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, being the day, the Court Sanction was filed with the Corporate Affairs Commission and to enable the Registrars to update the register of members for payment of the Scheme consideration and eventual delisting of the Company from the NGX,”.
Nairametrics reported recently that the Board of GlaxoSmithKline Consumer Nigeria Plc (GSK) announced that the Company has received the Securities and Exchange Commission’s formal approval of its scheme of arrangement which will result in delisting from the Nigerian Exchange Limited (NGX).
The approval follows the Court Ordered Meeting held on December 5, 2023 – at which the shareholders of GlaxoSmithKline Consumer Nigeria Plc approved the proposed Scheme of Arrangement.
This was contained in the company’s Notice to the NGX and investing Public seen by Nairametrics.
The company in a statement signed by Frederick Ichekwai, the Company Secretary also disclosed that the order of the Federal High Court sanctioning the Scheme of arrangement has also been obtained.
Application for the delisting of the Company’s shares
It added that an application for the delisting of the Company’s shares from the NGX will be submitted imminently.
The statement reads:
- “Following the Court Ordered Meeting held on December 5, 2023 – at which the shareholders of GlaxoSmithKline Consumer Nigeria Plc (GSK) approved the proposed Scheme of Arrangement (“the Scheme”) – GSK Consumer Nigeria hereby notifies Nigerian Exchange Limited (NGX), our esteemed shareholders, and other stakeholders that the Company has now received Securities and Exchange Commission’s Formal Approval of the Scheme.
- The order of the Federal High Court sanctioning the Scheme of Arrangement has also been obtained.
- An application for the delisting of the Company’s shares from the NGX will be submitted imminently”.
What you should know
Shareholders of GlaxoSmithKline Consumer Nigeria Plc had approved the payment of N17.42 for every share held by its shareholders as part of the Scheme of Arrangement for the dissolution of the company.
The shareholders at the Court-Ordered Meeting of GlaxoSmithKline Consumer Nigeria Plc also among other things endorsed the delisting from the Daily Official List of the Nigerian Exchange Limited upon the Scheme becoming effective.
GlaxoSmithKline, the UK-based pharmaceutical giant earlier announced on August 3, 2023, that it would be leaving Nigeria and shutting down its Nigerian subsidiary, GlaxoSmithKline Consumer Nigeria Plc, subject to approval from the regulatory authorities.
According to the statement signed by the company secretary, Frederick Ichekwai, the company has received a “No Objection” from the Securities and Exchange Commission to propose a Scheme of Arrangement for its shareholders.
The proposed scheme of arrangement among other things notes that all the company’s outstanding shares will be cancelled and all its existing shareholders except GSK UK will be settled at a premium of N17.42 for every share they hold.