HomeBrands

GSK Nigeria’s Shareholders Earn N956.7m As Share Price Hits Four-Year High

Glaxo SmilthKline (GSK) Consumer Nigeria’s share price hit N8.90 kobo percent on August 4, a day after announcing the shutdown of its operation in the country.

The share price was GSK’s highest in four years.

Recall that Ripples Nigeria reported that GSK in the United Kingdom had discontinued business with its Nigeria unit after the former terminated the vaccines and medical distribution contract between both parties.

GSK UK informed the Nigerian subsidiary that it would issue a license to another Nigerian pharmaceutical company to distribute its vaccines and medical in the local market.

Also Read: 2nd Cycling Lagos Gets Government Backing, Set To Discover New Talents

On Thursday, GSK Nigeria 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.

Following the disclosure, the company’s share value which had been trading flat at N7.40 kobo since July 28 rose to N8.10 kobo on Thursday.

This later rose to N8.90 kobo at the close of trading on Friday.

The rise in GSK Nigeria’s share value has therefore indicated that investors are positioning for the planned payout by the company before its total shutdown.

The firm which paid N0.55 kobo per share as dividends to shareholders in 2022 has retained earnings of N8.56 billion (as of June 2023) from which it paid dividends to its shareholders.

Ripples Nigeria analysis showed that due to the high demand for GSK Nigeria shares on Thursday and Friday last week, the company’s shareholders earned N956.7 million from trading during the period.

This equally pushed up GSK Nigeria’s market valuation from N8.84 billion to N9.80 billion last week.

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.

The jostle for GSK Nigeria’s shares after the announcement of its shutdown raised the value of investments held by shareholders by 20.27 percent within one week.

At least 53.6 percent of GSK Nigeria’s stake is held by Nigerian shareholders while 46.4 percent of the shares are owned by GSK UK through Setfirst Limited and Smithkline Beecham Limited.

It has N1.26 billion in unclaimed dividends as of June this year.

COMMENTS

WORDPRESS: 0
DISQUS: 0
%d bloggers like this: