GSK seeks shareholders’ approval to divest $79.2m drinks business
GlaxoSmithKline Consumer Nigeria Plc (GSK), a pharmaceutical and healthcare company, has sought the consent of its shareholders over a binding offer from Suntory Beverage & Food Ltd (SBF) for the divestment of its drinks bottling and distribution business valued at $79.2 million.
The divestment decision, tendered by its board before the shareholders at the Extraordinary General Meeting held Monday, in Lagos, was described by GSK chairman, Board of Directors, Edmund Onuzo, as necessary to enable GSK Nigeria refocus and reinvest in the rapid expansion of the retained business portfolio and deliver more value to shareholders.
Onuzo promised that despite the transaction, GSK Nigeria would still be listed on the Nigeria Stock Exchange.
“It will also continue to manufacture, market, and distribute a portfolio of healthcare brands including Sensodyne, Panadol, Horlicks and, in future, the legacy Novartis brands, such as Voltaren and Otrivin,” he added.
Earlier in its Annual General Meeting (AGM) session, the shareholders had approved 30k per share which was recommended by the board as dividend for the year ended December 31, 2015. The dividend totalled N358.761 million.
According to the report of the 45th AGM, GSK recorded a turnover of N30.634 billion in 2015; pre-tax profit dropped 58 percent to N1.157 billion from N2.752 billion recorded a year ago.
Similarly, profit after tax dipped 47.8 percent to N965.047 million from N1.848 billion declared in the same period of 2014.