Shareholders demand compensation as GSK announces wind-up

<p>Shareholders have demanded fair compensation for their investment, following the announced closure of operations of British pharmaceutical company, GlaxoSmithKline Consumer Nigeria Plc, in the country.</p>, <p>The Nigerian subsidiary of GSK in a statement signed by its Company Secretary, Frederick Ichekwai, on Thursday, revealed that it planned to stop doing business in the country, and move to a third-party distribution model for its drugs and consumer healthcare goods.</p>, <p>Speaking on the development, the Chairman Emeritus of the Independent Shareholders Association of Nigeria, Sunny Nwosu, faulted the government for creating an unfavourable business climate that was pushing out businesses.</p>, <p>He, however, demanded that Nigerian investors must be adequately compensated.</p>, <p>He said, “That is a global decision. They have done it in South Africa, East Africa, North Africa, but the point is, Nigeria’s government is owing most of them. I have been saying this if anyone imports dollars to do business in Nigeria, that company is eligible to repatriate its profits.</p>, <p>“All these things have been piling up for a very long time. They never bothered to say let’s do a budgetary allocation for their outstanding profits of companies participating in business in the country.</p>, <p>“They must pay adequate compensation to Nigerian investors, who kept the business going all these years. It is easy in and easy out. Once that is done, I believe Nigerian shareholders will be happy to say, ‘okay they are leaving, we are receiving good compensation.’ So they will invest somewhere else.”</p>, <p>Professor of Economics from the University of Kaduna, Seth Akutson, said, GSK’s exit would have an effect on unemployment in Nigeria and send a wrong signal to the international business community.</p>, <p>He said, “It will also send a wrong signal to the international community. The economy will be impacted. The cost of production, the cost of infrastructure, the economic climate, multiple taxation, and ease of doing b