Aduragbemi Omiyale
By Aduragbemi Omiyale
Trading in the shares of GlaxoSmithKline (GSK) Consumer Nigeria Plc on the floor of the Nigerian Exchange (NGX) Limited has been suspended for now.
Holders of the company’s equities will not be able to sell or buy the stocks until the suspension is lifted by the NGX Regulation Limited (NGX RegCo), the agency saddled with the responsibility of regulating the market.
A notice from the stock exchange last week explained that the decision to stop investors from trading GSK stocks was because of the “approval of the scheme of arrangement.”
The major shareholder of GSK intends to buyout the stake held by the minority ahead of its delisting from the local bourse and exit from the Nigerian market due to the tough business environment.
“Trading Licence Holders are hereby notified that following the approval of the Scheme of Arrangement between GlaxoSmithKline Consumer Nigeria Plc and holders of its fully paid ordinary shares by the Securities and Exchange Commission (SEC) and sanctioning of the Scheme of Arrangement by the Federal High Court, trading in the shares of the company was suspended on the Nigerian Exchange Limited on Monday, January 22, 2024.
“The suspension was to prevent further trading on the shares of the company given that the effective date of the scheme of Arrangement was Friday, January 19, 2024, being the day the court sanction was filed with the Corporate Affairs Commission (CAC) and to enable the registrars to update the register of members for payment of the scheme consideration and eventual delisting of the company from the NGX,” the disclosure read.
