Glaxosmithcline Set To Quit Nigeria
*Direct-third party Representatives to market and distribute products henceforth.
Global consumer products manufacturer, Glsxo Plc UK, has announced that it is set to shut down its Nigerian subsidiary, Glaxosmithcline Plc.
e Nigeria Plc, announced Thursday that it has concluded plans to shut down its operation and pull out of the country.
The company made the announcement Thursday in a press statement signed by its secretary, Frederick Ichekwai and filed with the Nigerian Stock Ltd.
By the statement, Glaxosmithcline Plc will be putting a halt on the marketing and commercialization of GSK UK Plc's prescription medicines, vaccines, consumer healthcare products and pharmaceuticals.
By extension, the global outfit will, henceforth, be distributing its product through what it referred to as 'third-party direct distribution model.
“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 statement read in part.
GSK UK Plc promised to brief its employees, assuring that they will be "treated fairly, respectfully and with care, meeting all applicable legal and consultation requirements”.
It also assured that the “Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on the next steps and we will be shortly submitting to the Securities and Exchange Commission, a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital.”
GlaxoSmithKline Consumer Nigeria Plc was incorporated in 1971, with 46.4 per cent of its shares held by UK-incorporated Setfirst Limited and Smithkline Beecham Limited.
The other 53.6 per cent is held by Nigerian shareholders. However, GlaxoSmithKline Plc, United Kingdom (GSK Plc, UK) retained both the parent and ultimate controlling authority delegated through Setfirst Limited and Smithkline Beecham Limited.
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