VENTURES AFRICA – UK’s biggest drug maker GlaxoSmithKline Plc (GSK) 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.

“Our focus is that if it has to be done…, it’s done right,” he said.

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

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

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

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

Also criticising the proposed acquisition was the President of AVID Shareholders Association of Nigeria, Abayomi Obabolujo, who said ‘‘best practice ensures that the interests of the minority shareholders are duly protected.”

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

http://www.ventures-africa.com/2013/11/gsk-may-continue-bid-to-takeover-nigerian-unit/




GSK has had a glimpse of the future and they want to position themselves very well.
Are Nigerians seeing what they are seeing?