GSK set to divest from Nigerian drinks business

NIGERIA – GSK Consumer Nigeria Plc has confirmed that it has received a non-binding offer from, Suntory Beverage & Food, SBF Limited to diversify its drinks business comprising the bottling and distribution of Ribena and Lucozade and part of the Agbara manufacturing site.

The Board, it was gathered is considering the offer and expects to make a decision after the appointment of its professional advisers and negotiation with SBF.

Any potential sale would be subject to shareholder and regulatory approvals and, until it completes, the Drinks Business would belongs to GSK Nigeria and “business as usual” would be maintained with

It was also gathered that the Board has granted SBF access to certain due diligence information. There can be no assurance that SBF will make a binding offer following completion of their due diligence review, or whether the terms of any such offer will be acceptable.

Findings show that the financial terms of SBF’s non-binding offer remain confidential.

Also, any potential sale would be subject to shareholder and regulatory approvals; no change to the terms of employees working on the drinks business; no change to the commercial arrangements of customers

If the transaction is agreed and the shareholders and regulators were to approve the sale, the retained GSK Consumer Healthcare Nigeria business would comprise Wellness, Oral healthcare, Nutrition and Pharmaceutical/Vaccines businesses, and would remain listed on the Nigerian Stock Exchange (NSE).

According to the Legal Director and Company Secretary, GSK Consumer Nigeria Plc, Mr. Uche Uwechia: “The Board of GSK has a duty to consider the non-binding offer and ensure that stakeholders are informed and engaged.

We operate in a very challenging environment and it is the Company’s responsibility to consider all options to increase shareholder value.”

January 28, 2016; http://www.vanguardngr.com/2016/01/gsk-set-to-divest-from-drinks-business/

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