GSK suspends plans to increase stake in Nigerian subsidiary
Global drugmaker GlaxoSmithKline has suspended a deal to spend over $1 billion increasing its stakes in its consumer healthcare subsidiaries in Nigeria, eight months after it was announced.
The proposed arrangement, which stated that GSK would increase its indirect ownership of GSK Nigeria from 46.4% to 75%, has been withdrawn. This is because the African company's minority shareholders opposed the deal.
The plans have not been abandoned by GSK, but both companies have agreed to consult shareholders and the Securities and Exchange Commission about the proposal, including whether it should be implemented by way of a tender offer.
"GSK and GSK Nigeria believe that the suspension of the scheme of arrangement is necessary to consider appropriate amendments to the proposal for GSK to increase its indirect ownership in GSK Nigeria."
Quote from the GSK statement.
GSK and GSK Nigeria are due to make a further announcement in due course.
Related news:
GlaxoSmithKline suspends plan to raise stake in Nigerian unit (Financial Times)
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