At Last, GSK Leaves Stock Exchange in Nigeria

By Dipo Olowookere

The entire shares of GlaxoSmithKline (GSK) Consumer Nigeria Plc have been delisted from the Nigerian Exchange (NGX) Limited.

The equities of the organisation were taken off the stock exchange on Monday, February 5, 2024, after it applied to quit the bourse last year.

GSK is exiting the Nigerian market after 51 years, apparently due to some business challenges it was facing in the country, particularly because of the foreign exchange (FX) crisis affecting the macroeconomic environment.

Many businesses have had to close shops or reorganise their business models because of the shortage in the supply of forex into the currency market, which has led to the devaluation of the Naira more than once since the administration of Mr Bola Tinubu assumed office in May 2023.

Business Post reports that rising inflation and weak purchasing power have made it difficult for companies to scale up their operations and make profits.

According to the National Bureau of Statistics (NBS), inflation rose in December 2023 by 28.92 per cent, though the Central Bank of Nigeria (CBN) has said it intends to bring down the rate to 21.4 per cent this year.

In an update to the investing community, the NGX confirmed that the “entire issued share capital of GSK” has been delisted from its platform.

“We refer to our market bulletin of 23 January 2024 with reference Number: NGXREG/LRD/MB4/24/01/23 wherein the market was notified of the full suspension placed on trading in the securities of GlaxoSmithKline Consumer Nigeria Plc in preparation for the delisting of the company.

“Following the approval of the company’s application to delist its entire issued share capital from NGX Limited, please be informed that the entire issued share capital of GSK was on Monday, February 5, 2024, delisted from the daily official list of NGX,” the notice read.

GSK is a major player in the pharmaceutical and biotechnology sectors in Nigeria, with household brands like Panadol, Sensodyne, Andrews Liver Salt, Voltaren, Panadol, Otrivin, Horlicks, Ribena, Lucozade, Macleans, and Ampiclox, among others.

Since it announced its plan to leave the Nigerian market in August 2023, prices of these products have risen. The company has stopped manufacturing these products in the country and is opting to produce outside and give a third-party company the distribution rights in Nigeria.