GlaxoSmithKline Consumer GSK UK Group Plc has finalized its decision to close down its operations in Nigeria. GSK Nigeria issued a statement, signed by its Company Secretary, Frederick Ichekwai, to the Nigerian Exchange Limited (NGX) on Thursday, disclosing that its parent company, GSK Plc UK, has communicated its intention to discontinue the commercialization of prescription medicines and vaccines through its Nigerian subsidiary.

The statement further explained that the GSK UK Group plans to transition to a third-party direct distribution model for its pharmaceutical products in Nigeria. Additionally, the Haleon Group has informed the Board of its intention to terminate its distribution agreement in the coming months and appoint a third-party distributor for the supply of its consumer healthcare products in Nigeria. Considering these developments and after evaluating various options, the Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that shutting down operations is the only viable option.

Frederick Ichekwai emphasized that they would treat their employees fairly, respectfully, and with care, while meeting all applicable legal and consultation requirements. The Board is aware that shareholders will have numerous questions, and they are actively working with professional advisors to determine the next steps.

They intend to submit a draft Scheme of Arrangement to the Securities and Exchange Commission (SEC), which, if approved, may result in shareholders other than GSK UK receiving an accelerated cash distribution and return of capital. The Board expressed appreciation for the support of the GSK Group in making this possible.

However, they cautioned shareholders that the final terms of any scheme and its approval by the SEC and shareholders cannot be guaranteed at this point. Shareholders are advised to seek professional advice and exercise caution when dealing with the company’s shares until further announcements are made.