GSK to own 80pc of GSK Nigeria

GSK could soon hold an 80 per cent stake in GSK Nigeria.

GlaxoSmithKline (GSK) and GSK Nigeria have announced an agreement in principle for the pharmaceutical giant to increase its ownership in GSK Nigeria.

If completed, the transaction would see GSK increase its stake in GSK Nigeria from 46.4 per cent to 80 per cent.

David Redfern, GSK's chief strategy officer, said the proposal "reiterates our long-term support of the company's strategy and our confidence in the continuing growth prospects of the business".

GSK Nigeria manufactures, markets and distributes a range of brands, such as Panadol and Sensodyne, as well as pharmaceutical products and vaccines, which account for approximately 30 per cent of revenue.
GSK intends to acquire around 321 million shares at an offer price of NGN 48 per share, representing a premium of 28 per cent on top of GSK Nigeria's closing share price on November 23rd 2012.

Chief Olusegun Osunkeye, chairman of GSK Nigeria, commented: "The board of directors unanimously believes that the proposal is in the best interests of the continued growth of the company, the shareholders, employees and customers, the community and Nigeria and intends to recommend it to shareholders."