UK-based GlaxoSmithKline (GSK) has postponed plans to increase its stake from 46.4% to 75% in GlaxoSmithKline Consumer Nigeria (GSK Nigeria), proposed under a scheme of arrangement.
The minority shareholders considered the deal unfavorable and believed that amendments to the proposal to increase GSK's indirect ownership in GSK Nigeria are to be considered.
Both the parties have agreed to consult shareholders and the US Securities and Exchange Commission regarding the proposal, including whether it should be implemented by way of a tender offer.
GSK Consumer Nigeria managing director Chidi Okoro said, "GSK as a company believes in fairness and transparency in all its processes, and we are committed to shareholder's interest and the growth of the Nigerian economy."
Further, GSK had commenced work on the formalisation of updated long-term arrangements that would allow continuation of the distribution of Lucozade and Ribena brands by GSK Nigeria in Nigeria and some West African countries.
GSK Nigeria believes it is crucial to conclude and disclose the arrangements before any revised proposal is put to its shareholders.
