NGX Suspends Trading On Shares Of Glaxo SmithKline

The Nigerian Exchange Group Ltd has suspended trading on the shares of Glaxo SmithKline Consumer Nigeria Plc.

The NGX made the disclosure in its weekly report seen by THE WHISTLER.

The suspension is in line with the plans by GSK to delist from the stock exchange.

NGX said, “Trading Licence Holders are hereby notified that following the approval of the Scheme of Arrangement Glaxo SmithKline Consumer Nigeria Plc 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, January 19, 2024, being the day the Court Sanction was filed with the Corporate Affairs Commission.”

The suspension will also enable the registrars to update the register of members for payment of the scheme consideration and eventual delisting of the company from the NGX.

GSK announced in August 2023 that it has concluded arrangements to shut down its operations in Nigeria.

The pharmaceutical company said GSK UK Group has informed GSK Consumer Nigeria of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria through the GSK local operating companies.

As part of the exit process, GSK further announced plans to delist from the NGX subject to the approval of the scheme of arrangement between shareholders.

Earlier this month, GSK Board said it has received the approval of Securities and Exchange Commission (SEC) on its proposed scheme of arrangement.

Recall that THE WHISTLER reported how high operating cost led to its exit.

The company generated a revenue of N25.38bn in 2022 but spent N18.45bn on operating costs.

In the first six months of 2023, GSK declared N3.7bn revenue but spent N2.4bn on operating cost and posted N184m profit.