Glaxo SmithKline office
A good 52 years after it was incorporated in Nigeria, GlaxoSmithKline Consumer Nigeria PLC has served notice of quitting operations in Nigeria with over 290 staff set to lose their jobs.
Staff strength of the company was put at over 290 in its 2021 Annual Report.
GlaxoSmithKline Consumer Nigeria Plc was incorporated in Nigeria on 23rd June 1971 and commenced business on 1st July 1972, under the name Beecham Limited with Head office at the popular Industrial Avenue, Ilupeju, Lagos.
About 44 years ago in 1979, it went public, listing at the Nigeria Stock Exchange. However, in a memo dated August 3, 2023, seen by Political Economist NG, the company announced its intent to cease operations in Nigeria.
The letter read in part: “Today we are briefing our employees whom we will treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements.
“The Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on next steps and we will be shortly submitting to the Securities and Exchange Commission (“SEC”) a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital.”
Below is the full text of the August 3, 2023 memo addressed to: Board of Directors GSK Consumer Nigeria plc, Lagos, Nigeria
In our published Q2 results we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products. The Haleon Group has also separately informed the Board of its intent to terminate its distribution agreement in the coming months and to appoint a third-party distributor in Nigeria for the supply of its consumer healthcare products.
For the above reasons, and having, together with GSK UK, evaluated various other options, the Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations.
Today we are briefing our employees whom we will treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements.
The Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on next steps and we will be shortly submitting to the Securities and Exchange Commission (“SEC”) a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital.
The Board acknowledges the support of the GSK Group in its intentions to make this possible, full details of which we hope to publish shortly. In the meantime, however, we cannot give you assurance of the final terms of any scheme, or that any scheme will be approved by the SEC or by shareholders.
Shareholders are advised to seek professional advice and continue to exercise caution when dealing in the company’s shares until a further announcement is made.
Investor and Media queries: frederick.e.ichekwai@gsk.com; omongiade.j.ehighebolo@gsk.com
companysecretary@gsk.com
Frederick Ichekwai
Company Secretary
