ABUJA, Aug 3 (Reuters) - GlaxoSmithKline (GSK) Nigeria (GLAXOSM.LG) said on Thursday it plans to stop doing business after evaluating the options for moving to a third-party distribution model for its drugs and consumer healthcare goods.
GSK Nigeria, which has faced increased competition from local companies and imports from India and China, said its half-year sales had dropped to 7.75 billion naira ($9.82 million), from 14.8 billion naira in the same period a year ago.
GSK Nigeria said it is working with advisers to agree next steps and plans to submit a scheme of arrangement to Nigeria's Securities and Exchange Commission, which if approved will see it return cash to shareholders except its parent GSK.
"For the above reasons, and having, together with GSK UK, evaluated various other options, the Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations," GSK Nigeria said in a statement.
Shares in GSK Nigeria, in which British drugmaker GSK has a 46.4% stake and Nigerian shareholders the remaining 53.6%, closed at 8.10 naira, down from a peak of 42.24 naira in 2014.
Persons:
Bola Tinubu, Tinubu, Chijioke Ohuocha, Alexander Smith
Organizations:
GlaxoSmithKline, GSK, Nigeria's Securities, Exchange Commission, Haleon, GlaxoSmithKline Consumer Nigeria Plc, British, Thomson
Locations:
ABUJA, Nigeria, GSK Nigeria, India, China, British, Africa