GSK Scrambles For N11.16bn To Payoff Stanbic Nominee, Other Shareholder Ahead Of Wind Down

Glaxo Smithkline Consumer Nigeria Plc which is finalising its exit from Nigerian is planning about N11.16bn settlement package for its shareholders.

The group said in the unaudited financial statement for 2023 seen by THE WHISTLER that it is only engaging in activities necessary to wind down the business and affairs of GSK Nigeria.

GSK said, “All Non-GSK Shareholders shall be entitled to the Initial Cash Distribution of N8.20 per share and a Top-Up of N9.22 per share, which amounts to a total of N17.42 for every share of GSK Consumer Nigeria Plc that they hold (the “Total Cash Distribution”) and N11.16 billion in aggregate.”

A breakdown of GSK shareholding shows Setfirst Limited controls 326,593,793 27 ordinary shares which is 27.31 per cent while Smithkline Beecham Limited controls 228,488,132 or 19.11 per cent of total issued shares.

Stanbic Nominees Limited holds 107,730,891 shares which is 9.01 per cent of the total issued shares of GSK.

Other shareholders are Mr. Edmund C. Onuzo who is a director holding a direct share of 337,912 which is 0.03 per cent and 11,170 indirect shares.

But GSK will not settle Setfirst Limited and SmithKline Beecham Ltd. However, the scheme of arrangement approved by the Securities and Exchange Commission mandates GSK to settle Stanbic Nominees Ltd and Onuzo.

The books reveal that GSK Plc, being the owner of Setfirst Limited and SmithKline Beecham Limited has elected not to receive its share of the Initial cash distribution in the sum of N4.55bn, and will contribute it to augment the cash distribution to the Non-GSK Shareholders.

GSK Plc through Setfirst Limited and SmithKline Beecham has unremitted dividends in the GSK Nigeria in the sum of N1.36 billion (gross of withholding tax).

“GSK Plc has offered it as additional contribution together with their share of the Initial Cash Distribution (the “Top-Up”).

“The delisting of the shares of the Company from Nigerian Exchange Limited (the “NGX”) upon the Scheme becoming effective and the cancellation of 1,195,876,488 ordinary shares of the Company held by Shareholders, in return for an additional cash amount (the “Capital Return”) to be paid to Shareholders in the first quarter of 2024,” the books revealed.

The company recorded 35.2 per cent drop in revenue from N25.4bn in 2022 to N16.4bn in its last fiscal year.

GSK’s profit after tax fell by 33.7 per from N1.24bn in 2022 to N815.4m in 20233 after it shut down some of its operations in the country.