GlaxoSmithKline Consumer Nigeria Plc has proposed a N17.4 pay-off package for each share held by the company’s shareholders.
The company said this ahead of its voluntary exit from the stock market as its directors no longer consider it as a going concern.
GlaxosmithKline said in a filing seen by THE WHISTLER that it has received Securities & Exchange Commission’s ‘’No Objection’’ to propose a Scheme of Arrangement to shareholders for the dissolution of GSK’s business.
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As part of the arrangement, shareholders would receive a total cash distribution of N17.42 per share for every share held in the Company
“Under the terms of the scheme, all of GSK’s outstanding shares will subsequently be cancelled. All the Company’s shareholders – except GSK UK (whose shares are held through its wholly owned subsidiaries, Setfirst Limited and SmithKline Beecham Limited) – will receive a total cash distribution of N17.42 per share for every share held in the Company,” the company said.
GSK UK has opted to relinquish its portion of the cash distribution. GSK UK owns 555,081,925 Ordinary Shares of GSK, which are held by Setfirst Limited and SmithKline Beecham Limited.
The proposed N17.42 per share far exceeds the N12.4 per share that the company’s stock traded on Friday which implies that the shareholders are receiving N5 premium.
THE WHISTLER however, found that GlaxoSmithKline has not been able to put its assets up for sale citing the assets “present condition.”
The company said in its Q3, 2023 interim financial statement , “Given the assessment that the Group is no longer a going concern, the directors considered whether non-current assets should be reclassified as current assets and non-current liabilities reclassified as current liabilities.
“As at the reporting date, the Group’s property, plant and equipment as well as investment property were not immediately available for sale in their present condition.”