The board of directors of GlaxoSmithKline Consumer Nigeria (GSK) Plc has accepted a binding offer from a Japanese firm, Suntory Beverage & Food Nigeria Limited, a subsidiary of Suntory Beverage and Food Limited (SBF) for the divestment of GSK Nigeria’s drinks bottling and distribution business.
In a regulatory filing, directors of GSK Nigeria said they would be recommending the offer to shareholders for approval.
If the shareholders and regulators were to approve the sale, the retained business of GSK Nigeria would be its wellness, oral healthcare, nutrition and pharmaceutical and vaccines businesses.
The board of directors however assured that the company would remain listed on the Nigerian Stock Exchange (NSE).
The principal terms of the offer are expected to be set out in a circular to the shareholders as investors await further details on the transaction.
Read also: Alas, insurance sector is investors’ new bride
The major products in the drinks business on offer include Lucozade, an energy drink that competes with PepsiCo Inc’s Gatorade and Coca-Cola Co’s Powerade, and Ribena, a liquid concentrate marketed toward children.
Suntory Beverage has said it plans to acquire companies in Southeast Asia, Middle East, Africa and Latin America to help double sales to 2.0 trillion yen by 2020. The Tokyo-based company derived about 31 percent of revenue from overseas markets in 2012, compared with 25 percent in 2011.
After purchasing the global rights to Lucozade and Ribena from GlaxoSmithKline United Kingdom, Suntory plans to use the acquisition to expand in countries where the UK company already operates, such as Nigeria and Malaysia.
Suntory began trading July 3, 2013 after raising almost $4 billion in Japan’s biggest share sale since Japan Airlines Co’s 663 billion yen initial public offering in September last year. Suntory Beverage, which sells Boss coffee, had bought 51 per cent of PepsiCo Inc (PEP)’s soft-drink business in Vietnam in 2013.
Parent Suntory Holdings, which sells whiskey and beer, remains unlisted. The beverage group bought France’s Orangina Schweppes Group for 300 billion yen in 2009 and paid 600 million euros in the same year for New Zealand’s Frucor Beverages Group.
Suntory Holdings had a 20 per cent share of Japan’s non-alcoholic drink market in 2012, the second-biggest after Coca-Cola Co’s 28 per cent, according to Inryosoken, a research company.
RipplesNigeria… without borders, without fears
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
SPECIAL REPORT: World Bank road projects go bad in Enugu, as state govt fails to fulfill promise
Counterpart funded road projects between the world Bank and Enugu State government have started to fail, as the state government...
INVESTIGATION: How N70m road construction created more hardship for Sokoto residents
“To address recurrent accidents on Gagi to Gidan Dilo road and Fakon Idi roads, in Sokoto State, the Federal Government,...
INVESTIGATION: Inside Kwara school where students are used as labour on teachers’ private farms
In this report, SHEREEFDEEN AHMAD uncovered how young students in Kwara State, Nigeria, are being used for labour work on...
INVESTIGATION: How Kano SUBEB awarded contracts to inactive contractors, non-existent schools
In an effort to address issues hindering quality education, the Kano State Government in 2020 awarded N88,406,667.10 for the construction...
SPECIAL REPORT: Hike in gas price forces more Nigerians to use coal, sawdust, as smoke kills 93,300 yearly
In the build-up to the 27th Conference of Party (COP 27), Nigeria recently launched its energy transition plan (ETP) as one of...