GSK had in August called for an extension of closure date to September 30th to allow for both parties to comply with the terms of the Asset Purchase Agreement entered into on May 31, 2016.
According to a statement released by GSK, its retained business will continue to be listed on the Nigerian Stock Exchange (NSE).
The retained business which forms the new GSK Consumer Healthcare Company consists of the consumer healthcare wellness, Oral healthcare and Nutrition categories as well as a Pharmaceutical business, with a portfolio of leading healthcare brands.
The company still has in its shelve Sensodyne, Macleans, Panadol, Horlicks, Andrews Liver Salts, Voltaren, Otrivin and CAC 1000.
The sale of GSK’s drinks bottling and distribution business (Lucozade and Ribena) which fetched GSK Nigeria a headline price of 79.2 million dollars, started on January 25, 2016 after receiving a non-binding offer from Suntory for the acquisition of the company drinks business and following intense negotiations, on May 31, 2016 GSK Nigeria agreed on the terms of the proposed sale of the drinks business.
GSK said areas where the proceeds will be deployed to include, payments of taxes, cost of transaction, debts which involves intercompany / trading arrangements, dividends, and investment to grow the retained business. Other detail of the transaction includes the disposal of a portion of the factory, the distribution infrastructure, warehouses and distributors.
As part of the deal, employees who are involved in the drinks business will be offered employment by Suntory on terms and conditions, no less favourable to their current terms. The disposal of Agbara manufacturing facility for the drinks business and the associated 6.45 hectares of the Agbara land will enable GSK Nigeria to invest in the future in purpose built facilities to support the retained GSK consumer business.