Capital

GSK Nigeria to pay N8.97b special dividend to shareholders

 

 

GlaxoSmithKline Consumer Nigeria (GSK) Plc will distribute a total of N8.97 billion as dividend to shareholders for the 2017 business year.

The board of directors of GSK yesterday indicated that it has approved the payment of N8.49 billion as special dividend and N478.4 million as ordinary dividend, bringing total payout for the 2017 business year to N8.97 billion.

A breakdown of the dividend recommendation showed that shareholders will receive a special dividend per share of N7.10 and ordinary dividend per share of 40 kobo, implying a total dividend per share of N7.50.

The dividend recommendation as well as the audited report and accounts of the healthcare company were approved by the directors of the company at their meeting at the weekend. The dividend will be paid on May 25, 2018, a day after the annual general meeting in Lagos.

GSK has recently been distributing its surplus capital as special dividend to shareholders after it concluded sales of segment of its business to other investors. GSK had in 2016 concluded a N22.6 billion divestment of its drinks business to the Japanese group, Suntory Beverage and Food Limited (SBF).

GSK Nigeria transferred the ownership to Suntory Beverage & Food Nigeria Limited, a subsidiary of the SBF, on October 1, 2016. GSK Nigeria’s drinks business included the two iconic brands-Lucozade and Ribena. The sale included the company’s business of manufacturing, bottling, marketing, distributing and selling of the Ribena and Lucozade brands in Nigeria and all assets attached to or deployed in connection with the business.

Following intense negotiations on May 31, 2016, GSK Nigeria and Suntory had agreed to the terms of the proposed sale of the drinks business for a headline price of $79.2 million. Suntory Beverage & Food Nigeria Limited is a subsidiary of the Japanese group, Suntory Beverage and Food Limited (SBF), a leading soft drinks company with total sales of £6.6 billion.

After the conclusion of the divestment deal, GSK Nigeria had in 2016 paid a special dividend of N716 million to shareholders, representing 60 kobo per share.

Now, the retained business of GSK Nigeria would be its consumer healthcare wellness, oral healthcare, nutrition and pharmaceutical and vaccines businesses.

 

 

Source The Nation

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