GlaxoSmithKline to increase stake in GlaxoSmithKline Consumer Nigeria GlaxoSmithKline and GlaxoSmithKline Consumer Nigeria PLC announced that they have reached agreement in principle on the terms of a proposal whereby GSK would increase its ownership in the company from 46.4% to 80%. A minimum public shareholding of 20% is required for a company to maintain a listing on the Nigerian Stock Exchange. Under the terms of the proposal, GSK would acquire approximately 321 million shares in the company on a pro rata basis from public shareholders, at an offer price of NGN 48 per share. The transaction will be funded through GSK’s existing cash resources, will be modestly earnings accretive immediately, and will not impact expectations for the Group’s long-term share buyback program.
GlaxoSmithKline downgraded to Underperform from Neutral at BofA/Merrill BofA/Merrill downgraded GlaxoSmithKline to Underperform citing a lack of pipeline catalysts and its belief the European pharma sector is close to fair value.