Nigerian Shareholders Kick Against GSK Takeover Bid

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By Alphonsus E.W

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UK ‘s biggest drug maker GlaxoSmithKline Plc may continue with plans to acquire a majority stake in its Nigerian unit after suspending the plan four months ago.

According to Chidi Okoro, CEO of GlaxoSmithKline Consumer Nigeria Plc, the plan by GSK to increase equity in its Nigerian unit was only suspended and will come up later when all parties involved reach an agreement.

GSK has, in recent times, signaled its interest to increase its stake in Nigeria in a bid to take advantage of rising consumer spending in Africa’s most populous country.

The group in July proposed to increase its stake in the Nigerian business to 80% from 46.4%, in a transaction estimated at $98 million.

The move was however met with criticism from some Nigerian stakeholders including the President Progressive Shareholders of Nigeria (PSAN) Boniface Okezie, who labeled it as “fraudulent and unfortunate”

He said; “the interest of minority shareholders was not protected by GSK.”

Also criticizing the proposed acquisition was the President of AVID Shareholders Association of Nigeria, Abayomi Obabolujo, who said; “best practice ensures that the interest of the minority shareholders are duly protected.”

The company has since recommended the bid to shareholders and awaits the passing of the proposal.

Credits; Ventures Africa

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