Financial Vanguard July 29 2013

Page 1

JULY 29, 2013

122.65

-2.15

2,340.00

-7.00

16.42

0.03

108.65

+0.92

105.60

+0.69

CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA

154.76 238.3923 205.3201 166.6057 1.5694 0.292 232.7076 RENMINBI 25.2253 RIYA 41.2649 KRONA 27.4013 SDR 233.5483

155.26 239.1625 205.9834 167.1439 1.5745 0.302 233.4595 25.3072 41.3983 27.4899 234.3029

SELLING 155.76 239.9327 206.6468 167.6822 1.5796 0.312 234.2113 25.3892 41.5316 27.5784 235.0574

CBN Exchange rate as at 26/07/2013

From Left: Dr. Joseph Odumodu, Director General, Standards Organisation of Nigeria (SON), Ini Onuk, CEO, ThistlePraxis Consulting Limited, and Jim Obazee, CEO, Financial Reporting Council of Nigeria (representing the Hon. Minister for Trade & Industry) at the launch of NIS: ISO 26000 in Lagos, recently.

Ownership tussle: GSK in fresh negotiation with shareholders … Shareholders list conditions for acceptance By JONAH NWOKPOKU

G

LAXOSMITHKLINE Consumer Nigeria Plc, GSK has resolved to commence fresh negotiation with shareholders over plans by its United Kingdom parent company, to increase its majority stake in the company. Meanwhile, shareholders have listed conditions for accepting the bid by GSK United Kingdom to raise its shareholding to 75 per cent from 46.4 per cent.

“There must be something for both to take away from the table at the end of the day. That is what we are in the process of arranging now that we are to resume talks afresh”, said Mr. Olusegun Osunkeye, Chairman, and Board of Directors. He spoke at a media parley at the end of the court-ordered meeting held last week Tuesday. “We feel it will be mutually beneficial for all shareholders to withdraw the scheme to allow for further consultations. We are going back to the drawing board, that is, GSK UK and GSK Nigeria to look at the new

Scheme of Arrangement and to look again at the terms; so that with those two when concluded, further announcements will be made,” Osunkeye said. The original agenda of the meeting was a resolution to consider and approve the Scheme of Arrangement for GSK U.K to increase its shareholding from 46.4 per cent to 75 per cent. But the company bulked and decided to withdraw the scheme due to opposition from shareholders. Alternatively, the company decided to use the meeting to formally announce

the withdrawal of the scheme, engage, and interact with shareholders on acceptable options for GSK U.K to achieve its intention. Osunkeye admitted that the thorny issues revolve around the right price to sell and willingness of shareholders to sell as well. He said that while the right price offered by GSK UK as at November, 2012 was reasonable and fair, it has become expedient to review the price to reflect the current economic realities. “The price has now moved incidentally from what GSK UK originally offered the shareholders. At the time it was announced, it was at a price that most people considered fair. But since then, a few things have happened, the price on the Stock Exchange has moved in the range of N50 to N58. So it is a question of now having to revise and so dialogue and consultations are taking place. “We could not conclude on where GSK UK who is the one offering should approximately pitch the price. We have recommended that the price should move up. So the question now is at what level. This is where we are,” he said. He further explained that, “When in November GSK proposed N48, it was Continues on page 18 C M Y K


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