GlaxoSmithKline reveals plans to shut down operations in Nigeria

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Esther A

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GlaxoSmithKline reveals plans to shut down operations in Nigeria

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GlaxoSmithKline Nigeria Plc have revealed their plans to stop their operations in Nigeria. The healthcare company announced their plans about ceasing their operations in Nigeria just recently.

They shared this in a press statement which was issued on Thursday, August 3rd, 2023.
It was the company Company Secretary, Frederick Ichekwai who signed the press release.

This company is a Biophama company and they market and distribute consumer healthcare and pharmaceutical products.

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The parent company is located in the UK and have now made their decision to end their work in their branch in Nigeria. GlaxoSmithKline Consumer Nigeria Plc was integrated in 1971.

The parent company which controls the Nigerian subsidiary is the GlaxoSmithKline Plc, United Kingdom (GSK Plc UK).
GSK Plc UK controls the Nigerian Company through Setfirst Limited and Smithkline Beecham Limited.

The statement they released revealed how the GSK UK Group informed GlaxoSmithKline Consumer Nigeria PLC about these plans to cease commercialisation through the subsidiary in Nigeria.The company revealed that they will brief their employees about this.

GSK has also mentioned that they will appoint a third-party distributor in Nigeria and this will be for the supply of its consumer healthcare products in the country.
Some shareholders in this company have also expressed their displeasure over this new development. About 53.6% of the shares in this company are held by Nigerian shareholders.

The company has revealed that they are working on some steps that if approved, their shareholders minus the GSK UK will receive return of capital and cash distribution.

The other 46.4% of the shares of the Company are held by Setfirst Limited and Smithkline Beecham Limited which is the medium which the UK company controls the Nigerian subsidiary.