By Dosu Deborah Oluwatimilehin (SIWES student, Adeseun Ogundoyin Polytechnic Eruwa)
The Securities and Exchange Commission (SEC) has given its official nod to GlaxoSmithKline (GSK) Consumer Nigeria Plc’s delisting from the Nigerian Exchange Limited (NGX).
This decision, prompted by GSK’s earlier announcement of exiting the Nigerian market due to foreign exchange challenges and operational costs, underwent a thorough review by SEC. The delisting process, set to complete in the coming weeks, follows GSK’s confirmation of SEC approval.
GSK Consumer Nigeria shared that the Securities and Exchange Commission (SEC) has formally approved the proposed scheme of arrangement.
Shareholders previously endorsed the scheme on December 5, 2023, at a Court Ordered Meeting. The scheme involves delisting GSK Consumer Nigeria’s shares from NGX, accompanied by cash and equity distribution to shareholders.
With SEC and Federal High Court approvals obtained, the delisting and distribution process is set to commence.
GSK Consumer Nigeria, through Company Secretary Frederick Ichekwai, announced the imminent application for the delisting of the company’s shares from the NGX.
The scheme, offering benefits like cash and equity, received approval for a total cash payment of N9.16 billion and 20 million ordinary shares of Unilever Nigeria Plc.
The process, expected to conclude in the first quarter of 2023, also includes share capital consolidation for increased efficiency and attractiveness to investors.
Beyond individual benefits, the scheme of arrangement is poised to impact the NGX positively.
The listing of 20 million ordinary shares of Unilever Nigeria Plc is anticipated to enhance liquidity and attractiveness to investors, contributing to a more efficient and cost-effective exchange.
Importantly, the scheme’s economic ripple effect extends beyond GSK Consumer Nigeria and Unilever Nigeria Plc, fostering increased investment and economic activity in the country.
