GlaxoSmithKline said that they are suspending plans to raise their stake in GSK Consumer Nigeria. The decision came after the shareholders for the African company opposed the deal. GSK announced that they wanted to increase their stake in GSK Consumer Nigeria from 46% to 75%. The company wanted to raise stakes by buying shares in GSK Nigeria from its existing investors.
GSK said that they have not abandoned plans to increase their stake in GSK Consumer Nigeria. The company said that they will continue to look into other options, like making a tender offer.
A GSK spokesman said, "We continue to believe it is in both our and GSK Nigeria's interest to increase our stake."
GSK Consumer Nigeria institutional investors opposed to the proposed plan of GSK. They argued that the GSK's offer of 48 naira per share was not enough. Coronation Fund Managers of South Africa and Development Capital Partners (DCP) of New York were hired as the GSK Consumer Nigeria institutional investors.
Join the Conversation