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GSK Shareholders Share Almost N1bn in 8 Hours as Company Prepares to Leave Nigeria
Capital Market

GSK Shareholders Share Almost N1bn in 8 Hours as Company Prepares to Leave Nigeria

by  Dave Ibemere 2 min read
  • One of Nigeria's top consumer goods companies, GlaxoSmithKline, which over the years has manufactured some of Nigeria's most popular medicines, is preparing to leave Nigeria
  • The company's shareholders are not happy with the development and are demanding compensation
  • The news of the company leaving has generated the interest of stock investors, helping shareholders make almost N1 billion in hours

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GlaxoSmithKline Nigeria Plc, the Nigerian subsidiary of GSK Britain, on Thursday, August 3, 2023, announced a stop to doing business here.

The news of plans to close the operation raised strong interest in the company's shares listed on the Nigerian exchange as shareholders looked to negotiate compensation.

GSK Nigeria, in its statement released by Secretary Frederick Ichekwai, assured shareholders of return on investments and payment of principal after it sought approval from the Securities and Exchange Commission (SEC) for the shutdown of its operation.

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GSK planning to leave Nigeria
A general view of the exterior of the GlaxoSmithKline offices as it plans to leave Nigeria Photo credit: Photo by Leon Neal
Source: Getty Images

The talks of compensation pushed the share price of GSK from N8.10 kobo on Thursday to N8.90 kobo on August 4 as stock investors look to benefit from the company's expected payout.

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Friday's N8.10 kobo share price was GSK’s highest level in four years.

Shareholders make millions

Amid the rush for GSK shares, Legit. ng analysis shows that the company’s shareholders earned N956.7 million from trading between Thursday and Friday.

This happened as GSK Nigeria’s market valuation increased from N8.84 billion when the operation closure was announced to N9.80 billion at the end o Friday.

Trading data from GSK Nigeria revealed that the last time its shares rose to N8.90 kobo per share was on July 5, 2019, when its stocks were traded at N10.20 kobo per share.

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Further checks show that the jostling for GSK Nigeria’s shares raised the value of shareholder investments by 20.27% within one week.

Aliko Dangote loses over N1.4trn in hours after CBN's naira decision

Meanwhile, in another report, Nigerian billionaire Aliko Dangote's wealth has experienced a significant decline of N1.4 trillion following the devaluation of the naira.

The devaluation was triggered by CBN's move to unify the country's multiple exchange rate system.

Most of Dangote's investments, which are linked to his wealth, are based in Nigeria, and the performance of the naira directly affects his wealth.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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