Tag: GSK

  • GSK court-ordered meeting holds Tuesday

    GSK court-ordered meeting holds Tuesday

    SHAREHOLDERS at a court-ordered meeting will on Tuesday pass a resolution for the reduction in share capital between GlaxoSmithKline Consumer Nigeria Plc (GSK Nigeria) and the holders of the fully paid ordinary shares of 50kobo each in the company among other issues in Lagos, The Nation can authoritatively report.

    Addressing newsmen in Lagos recently some officials of the company declared that GSK Nigeria and GlaxoSmithKline Plc (GSK Plc) have since reach a consensus on the terms of a proposal, which will enable the parent company increase its ownership in the Nigeria firm up from 46.4 % to 75 per cent. The proposed scheme will facilitate significant investment by GSK Plc in GSK Nigeria, it was learnt.

    Besides, the board of GSK Nigeria believes that the arrangement will create considerable benefits and opportunities for shareholders, consumers, staff and other stakeholders.

    The shareholders at the court-ordered meeting are expected to approve of the scheme. If approved, the existing shareholders will be expected to surrender 273,460,351 ordinary shares of 50 kobo in exchange for N48 per share, value that directors considered to be a fair deal.

    According to the company, the consummation of the scheme will create the environment for GSK Plc to provide the support required for GSK Nigeria’s expansion and capital improvement plans, develop its product portfolio, reinforce the company’s long term commitment to GSK Nigeria as one of the leading manufacturing companies in the country, as well as achieve smaller and more manageable share capital base and thereby ensure improvement in investment ratings, including earnings per share.

    The Nation further learnt that as part of effort to achieve the share buyout, existing shareholders stand to get N13.1billion.

    Justifying the need for the share buyout, company sources said the parent company is interested in investment in local manufacturing because it considers Nigeria as a very important market for GSK, hence, it is willing to help GSK Nigeria to significantly upgrade its manufacturing capacity.

    “In the last 18 months over N4.billion has been invested into the company. Local company depends on the parent for research and development. We hope this move will help to increase shareholders’ value and ultimately take the board to the next level,” official source said.

    It would be recalled that the board of directors of GSK Nigeria had in November last year got hints that GSK Plc plans to acquire approximately 321million shares in the company on a pro rata basis from existing shareholders at an offer price of N48 per share, following which the proposal was subjected to requisite shareholders, regulatory authorities and court approvals.

  • Investors dump GSK over acquisition offer

    GlaxoSmithKline Consumer Nigeria (GSK Nigeria) Plc recorded the highest unadjusted loss last week at the stock market as investors scurried for exit ahead of next week’s voting on less-than-market price offer by its foreign majority shareholder to acquire Nigerian-held shares.

    Amidst the sustained bullish rally at the stock market last week, GSK Nigeria’s share price slumped by 19 per cent to close at N54.27. It had opened the week at N67, indicating a loss per share of N12.73. Market analysts attributed the decline to sell pressure.

    GlaxoSmithKline (GSK) UK (GSK) Plc, the foreign majority shareholder in GSK Nigeria, is pushing to acquire 273.46 million ordinary shares out of the Nigerian shareholders’ holdings to add 28.58 per cent to push its post-acquisition holding at 75 per cent. GSK UK has offered N48 per share, about 40 per cent less than the opening stock market price for last week and still 13.1 per cent less than the opening price today.

    GSK currently holds majority equity stake of 46.4 per cent GSK Consumer Nigeria through two wholly- owned subsidiaries. With total current outstanding shares of 956.70 million ordinary shares of 50 kobo each, GSK UK holds 443.91 million shares while Nigerian institutional and individual investors hold the balance of 512.79 million shares.

    According to the proposal, GSK UK seeks to acquire the additional shares of GSK Nigeria on a pro rata basis from existing shareholders through a Scheme of Arrangement. The scheme is slated for consideration at a court-ordered meeting next week.

    With 75 per cent equity stake, GSK will be able to push through any future major changes including mergers and acquisition, delisting, shares buy back, changing of public limited liability status, new capital issues and restructuring among others. Extant Nigerian laws require 75 per cent shareholdings to approve such major changes.

    Several Nigerian minority shareholders have kicked against the acquisition but directors of the company have been rooting for the bid. However, only three of the nine directors of GSK Nigeria have shareholdings in the company.

    GSK Nigeria’s share pricing trend was contrary to the overall market trend last week as equities generally sustained consecutive uptrend all through the trading sessions. Average return at the Nigerian Stock Exchange (NSE) last week was 1.24 per cent, pushing year-to-date return to 33.13 per cent.

    Aggregate market capitalisation of all equities on the NSE increased from its week’s opening value of N11.694 trillion to close at N11.839 trillion. The All Share Index (ASI), the main common value-based index that tracks all equities, increased to 37,382.49 points as against its index-on-board of 36,926.29 points.

    Investors showed keen interests in equities. Total turnover stood at 1.67 billion shares worth of N18.27 billion in 25,367 deals. The financial services sector accounted for 1.31 billion shares valued at N11.63 billion in 13,565 deals. Substantial transactions in the shares of United Bank for Africa (UBA) Plc, Guaranty Trust Bank Plc and Access Bank Plc, which altogether pooled 735.184 million shares, were the main drivers of market’s turnover. The three stocks accounted for 43.91 per cent total turnover for the week.

    Mobil Oil Nigeria recorded a gain of N10.71 to close at N117.81. Julius Berger Nigeria rose by N5.02 to close at N70.02 while UAC of Nigeria added N4 to close at N58.50.

     

  • GlaxoSmithKline executives face China bribery probe

    Some senior executives of the Chinese division of GlaxoSmithKline (GSK) are facing a criminal investigation.

    They are being investigated for bribery and tax related violations, the state owned Xinhua news agency reported.

    BBC reports that they are suspected of offering bribes to officials and doctors in an attempt to boost sales in the country.

    On Monday, GSK said it was looking into claims that its staff used improper tactics to market Botox, but added that it had found no evidence so far.

    “We are investigating these new claims. However, our inquiries to date have found no evidence of bribery or corruption in relation to our sales and marketing of therapeutic Botox in China,” a GSK spokesman had said.

    “GSK has some of the toughest compliance procedures in the sector. We are proud of our high standards and operate in accordance with them,” he added.

    The allegations were first reported by the Wall Street Journal, which claimed that it had reviewed internal company documents which showed that sales employees were “apparently instructed by local managers to use their personal email addresses to discuss marketing strategies related to Botox.”

    “In the personal emails, sales staff discuss rewarding doctors for prescribing Botox with cash payments, credits that could be used to meet medical-education requirements and other rewards,” the paper said in its report.

    On Thursday, the Xinhua news agency reported that a statement from the Ministry of Public Security revealed that police had questioned some of the suspects.

    It added that the police had obtained evidence regarding the suspected offences.

     

  • Nigerian shareholders mobilise against GSK’s 80% bid

    Nigerian minority shareholders said they would mobilise stiff opposition against the bid by the GlaxoSmithKline (GSK) UK Plc, the multinational foreign majority shareholders in GlaxoSmithKline Consumer Nigeria (GSK Nigeria) Plc, to buy shares from Nigerian shareholders and increase its majority equity stake to 80 per cent. GSK has however revised its bid to 75 per cent equity stake.

    Shareholders who spoke to The Nation described the bid as unfair and against national interest. The board of GSK Nigeria has, however, recommended the acquisition bid arguing that the takeover of Nigerian shareholders’ stakes would facilitate significant investment by GSK in GSK Nigeria. The board said GSK has confirmed that it will retain the listing of GSK Nigeria on the Nigerian Stock Exchange.

    Directors of GSK Nigeria have said they would vote for the bid. However, only three of the nine directors have shareholdings in the company.

    GSK currently holds majority equity stake of 46.4 per cent GSK Consumer Nigeria through two wholly- owned subsidiaries. With total current outstanding shares of 956.70 million ordinary shares of 50 kobo each, GSK UK holds 443.91 million shares while Nigerian institutional and individual investors hold the balance of 512.79 million shares.

    GSK UK initially sought to buy 321.45 million shares out of the shareholdings by Nigerians to increase the foreign core investor’s controlling stake to 80 per cent. In the bid for the 33.6 per cent additional equity stake, GSK UK had offered price of N48 per share.

    While the offer price then represented a premium of 28 per cent to the closing price of a GSK Nigeria on November 23, 2012 and a premium of 34 per cent to the volume weighted average closing price of GSK Nigeria for the three months prior to November 23, 2012, it represents a huge discount to the opening market price of N67 on this week.

    According to the proposal, GSK UK seeks to acquire additional shares of GSK Nigeria on a pro rata basis from existing shareholders through a Scheme of Arrangement.

    Under the revised proposal for 75 per cent equity stake, GSK is pushing to acquire 273.46 million ordinary shares out of the Nigerian shareholders’ holdings to add 28.58 per cent to push its post-acquisition holding at 75 per cent.

    With 75 per cent equity stake, GSK will be able to push through any future major changes including mergers and acquisition, delisting, shares buy back, changing of public limited liability status, new capital issues and restructuring among others. Extant Nigerian laws require 75 per cent shareholdings to approve such major changes.

    Major minority shareholders’ leaders said they would not sell their shares and would advise others against selling their shares. They noted that no investor can be forced to surrender his equities.

    President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie said regulatory authorities should take note of Nigerian shareholders’ opposition to the bid.

    He said the 80 per cent acquisition bid might be a ploy by the company to further alienate Nigerian shareholders and delist its shares from the NSE citing the example of Nigerian Bottling Company (NBC), which had used its large controlling stake to push through delisting of its shares from the NSE.

    He urged the capital market regulators to rise up and protect the interests of Nigerian shareholders pointing out that the bid is unfair to Nigerians as investors and consumers of GSK’s products.

    He advocated for retention of current shareholding structure, which gives GSK a controlling stake but allows Nigerians to benefit to a large extent from the company’s operations.

    Chairman, Shareholders United Front (SUF), Mr. Gbenga Idowu, said shareholders have expressed their opposition to the bid but will wait to see what SEC would do given its primary responsibility of investors’ protection.

     

  • ‘Public-private partnership drives development’

    ‘Public-private partnership drives development’

    Sir Andrew Witty, Chief Executive Officer, GSK, at a teleconference in London recently, announced a five-year strategic partnership with Justin Forsyth-led Save the Children, a non-profit, non-governmental organisation. Witty declared that his company plans to raise at least £15million as well as encourage its global workforce to help raise awareness through volunteering and fundraising, to save the lives of a million children in sub-Saharan Africa and other parts of the globe. Ibrahim Apekhade Yusuf was part of the interactive forum

    How and why was the partnership with Save the Children forged?

    The partnership is something that has been worked together over the last 15 months. It is something which is been inspired by the opportunity to really try and generate different types of partnerships, bringing together scientific research skills from the private sector, pharmaceutical companies alongside the underground expertise working with Save the Children, to tackle child illness and mortality and general healthcare challenges.

    A partnership of this scale gives us an opportunity to do something amazing – to save the lives of one million children and to transform the lives of millions more. At GSK we are motivated by developing innovative life-saving medicines and getting them to the people that need them. By joining forces with Save the Children, we can amplify these efforts to create a new momentum for change and stop children dying from preventable diseases. I hope this partnership inspires GSK employees and sets a new standard for how companies and NGOs can work together towards a shared goal.

    How much is GSK committing into the partnership?

    We are looking to raise £15million which we will transfer to Save the Children over the course of the partnership, while we will encourage our 100,400 employees to raise £1million in a year, which we will double. Additional contributions will be made through specific research and development programmes.

    How will the £15million grow the business?

    We have over the years been very fortunate with our shareholders. I think that’s because people understand that we’re a global pharmacy company with the ability, strengths and talents, not just for our shareholders within the rich countries but wherever they are. Our focus at GSK is very much in two strands: innovation and access. And we believe that we can guarantee very sustainable return for our shareholders.

    At the same time, we’re very innovative towards strengthening of the developing world, especially in all healthcare arenas, and that has been something that the shareholders welcome. At GSK, we have in the last five years adopted a business model that is more committed to granting access to healthcare, and bring together all business models, develop new products, and make them available to people who need them, where we see potential opportunity to do that. Our goal is long-term and multi-dimensional. It is a collaborative working structure. We have already begun a focus inside the organisation and we are much more interested in impact and results.

    Given the high level of child mortality in Nigeria, which is 90, 000 death annually, what does the country stand to gain from the partnership?

    The partnership will initially run two flagship programmes in Sub Saharan Africa – Democratic Republic of Congo and Kenya and replicate programmes in other countries in Asia and Latin America.

    We will scale-up as the years roll by. Save the Children is currently working in 120 countries including Nigeria.

    In Nigeria, Save the Children is helping to improve health systems in northern Nigeria to delivery maternal, newborn, and child health services. It is helping 4,320 children through support for protection and peace committees as well as getting 12,400 children back to school and providing them with clean water.

    It has set up and continues to support child protection and peace committees (CPPCs) in 36 communities, benefiting 4,320 children. The CPPCs target children whose lives are affected by HIV and AIDS, exploitation, extreme poverty, family violence and neglect, and discrimination. They liaise with local government agencies and others to improve basic services, and provide support for the most vulnerable children and families.

    Is there a timeline for the partnership?

    It is a long-term partnership, at least for initial five years.

    What benefits, if any, will this partnership serve ultimately?

    We are working together to accelerate the availability of two children’s medicines and establishing a joint R&D board to tackle causes of newborn and infant death. Amongst the key initiatives are the transformation of an antiseptic used in mouthwash into a life-saving product for new-borns and the roll-out of a powder-form of an antibiotic in child-friendly doses to help fight pneumonia – one of the main killers of children under five.

    For the first time, Save the Children will be involved in helping GSK to research and develop medicines for children, with a seat on a new paediatric R&D board to accelerate progress on innovative life-saving interventions for under- fives, and to identify ways to ensure the widest possible access in the developing world. GSK will be able to leverage Save the Children’s child health expertise and on-the- ground experience to reach children in the most remote and marginalised communities with basic healthcare.

    The GSK-Save the Children partnership will also focus on widening vaccine coverage to the poorest children, increasing investment in health workers, as well as developing a low-cost nutritional product to help combat child malnutrition.

    While good progress has been made in recent years, almost seven million children died in 2011 through lack of access to basic healthcare, vaccines or nutritious food. Through these and other initiatives, the partnership aims to help save the lives of one million children in the next five years.

    Specifically, we are reformulating the antiseptic chlorhexidine – found in GSK’s Corsodyl mouth-wash – for cleansing the umbilical cord stump of new-borns to prevent serious infection, a major cause of newborn death in poor countries. Studies from South Asia suggest this simple intervention could prevent up to 1 in 6 new-born deaths in low resource settings.

    Also, we are seeking the accelerated registration and roll-out of a child-friendly antibiotic, used to treat pneumonia – which currently kills 1.4 million under-fives, in countries with a high-incidence of the illness. This will be developed in dose packs suitable for small babies and young infants. GSK will also work with Save the Children to explore the reformulation of an alternative child-friendly version in places where access to water and milk is not easy.

    Besides, we hope to widen vaccination coverage to the hardest to reach communities: for example, through greater use of mobile technology solutions, sending SMS messages to remind parents to take up vaccination services and providing health workers and health facilities with smartphones to allow them to record and schedule vaccinations.

    We are investing in healthcare workers in the poorest communities, building on an existing GSK-Save the Children collaboration to help address the estimated shortfall of at least 3.5 million trained healthcare workers, who can deliver vaccines and essential medicines to babies and young children, provide health advice and treat malnutrition.

    Developing a blueprint for how businesses can deliver better social outcomes by engaging with health and development issues and pursuing joint advocacy efforts to ensure a focus on children’s health and wellbeing are maintained in global health policy discussions.

  • GSK commits £15 million  towards child mortality in Africa

    GSK commits £15 million towards child mortality in Africa

    GLAXOSMITHKLINE has announced a five year strategic plan to commit at least £15million as well as encourage its global workforce to help raise awareness through volunteering and fundraising, to save the lives of a million children in sub-Saharan Africa, Asia and Latin America.

    Sir Andrew Witty, Chief Executive Officer, GSK, dropped this hint recently while addressing a teleconference in London.

    According to the GSK boss, the charity giving is being made possible as a result of the synergy of cooperation his company has with Save the Children, a non-profit, non-governmental organisation that works in more than 120 countries and helps to save children’s lives, fight for their rights and help them fulfil their potential.

    Announcing the partnership, Sir Witty said: “A partnership of this scale gives us an opportunity to do something amazing – to save the lives of one million children and to transform the lives of millions more. At GSK we are motivated by developing innovative life-saving medicines and getting them to the people that need them. By joining forces with Save the Children, we can amplify these efforts to create a new momentum for change and stop children dying from preventable diseases. I hope this partnership inspires GSK employees and sets a new standard for how companies and NGOs can work together towards a shared goal.”

    Echoing similar sentiments, Justin Forsyth, the Chief Executive of Save the Children said, “This ground breaking partnership involves both organisations working in genuinely new ways to save the lives of a million children. In the past Save the Children may not have embarked on a collaboration with a pharmaceutical company like GSK.

    But we believe we can make huge gains for children if we harness the power of GSK’s innovation, research and global reach.”

    The GSK-Save the Children partnership will also focus on widening vaccine coverage to the poorest children, increasing investment in health workers, as well as developing a low-cost nutritional product to help combat child malnutrition.

    Amongst the key initiatives are the transformation of an antiseptic used in mouthwash into a life-saving product for new-borns and the roll-out of a powder-form of an antibiotic in child friendly doses to help fight pneumonia – one of the main killers of children under five.

    Save the Children and GSK have been working together for eight years on a number of public health projects, including GSK’s initiative to reinvest 20% of the profits it makes in least-developed-countries in community programmes to strengthen healthcare infrastructure, primarily through the training of community health workers.

  • GSK,Tetra Pak partner on Ribena

    Ribena, the premium fruit drink from the stable of GlaxoSmithKline Consumer Plc (GSK) is partnering with Tetra Pak, a world leader in food processing and packaging, on Ribena/Tetra Pak “Drink it, Flatten it and Bin it” campaign to make life better.

    Ribena/Tetra Pak “Drink it, Flatten it and Bin it” campaign is school-based recycling contest requiring collection of used Tetra Pak cartons of Ribena for the production of furniture for school children in less privileged communities in Lagos State. The announcement was made at a press conference in Lagos recently.

    The Brand Manager, Ribena, Mr Olawale Akanbi said: “We believe that it is our duty as a corporate organisation to continually reinforce attitudes that will help enhance our society and preserve our environment. We are all responsible for our collective future and as a brand that is focused on improving the quality of human life; we see the need to work with the young ones with the hope to help them imbibe the right attitude towards our environment”.