Glaxo SmithKline Consumer Nigeria Plc’s N1.274bn unclaimed dividend has caused concern among shareholders after the company announced its delisting from the Nigerian Exchange Limited and cessation of operations in the country.
In August, GSK announced plans to stop operations in Nigeria, after over five decades, and instead adopt a distributor-led model to supply the country with its products.
In chats with some stakeholders of the company called regulators to protect their interests.
The President of Pragmatic Shareholders Association, Bisi Bakare, told The PRIMANEWS, “GSK should release all unclaimed dividends in their custody to their registrar. No penny should remain with them because shareholders recognise the registrar’s office whenever they have issues with their shares or have unclaimed dividends.
“We will have assurance from GSK that unclaimed dividend money will be left with their registrar, which is Greenwich Registrars & Data Solutions Limited (formerly GTL Registrars).”
The Leader of Credible Investors, Dr Anthony Omojola, stated that part of the statue-barred funds should be left with the delisting company, while SEC should manage the balance under its own Trust Fund.
“Incidentally, I am a member of the Federal Government appointed-Governing Board of Unclaimed Funds Trust Fund but nothing has been done. In an enquiry, I was told that they are waiting for the current government to visit the matter and make a pronouncement,” he noted.
In its financial results for the period ended September 2023, GSK revealed that its unclaimed dividend stood at N1.274bn (2022: N1.273 billion).
Omojola blamed “human failings” for the increase for the rise in unclaimed dividends in the country.
Meanwhile, a Federal High Court sitting in Lagos recently ordered GSK Consumer Nigeria Plc to convene a meeting with its shareholders regarding its plans to acquire their shares and delist from the NGX.
Providing enlightenment, the Managing Director/Chief Executive Officer, Kapital Care Securities Ltd, Andrew Tsaku, revealed the process and what shareholders should do in order to get their dividends.
He said, “Once a company declares a dividend, the said sum is transferred to and held by the registrars of that company in lieu of disbursement to respective shareholders, provided the registrars have their necessary details.
“Therefore, whether GSK delists and leaves Nigeria has no effect on any unclaimed dividends, because the registrar is in custody thereof, and will hold the same until the shareholder(s) come(s) forward to make a claim for it. Therefore, there is nothing to fear, because GSK cannot lay claim to any such sums under any guise!”
He, however, advised shareholders who hold such stock or any other ones to contact the registrars and make a claim before such funds become statute-barred, which is usually after 12 years of remaining unclaimed.
In its latest report, GSK revealed that the scheme of arrangement between the company and the holders of its fully paid-up ordinary shares of 50 Kobo each will see shareholders paid N17.42 per unit.
Unclaimed dividends in the capital market have been growing in recent years.
At the last Capital Market Committee meeting, the Securities and Exchange Commission revealed that unclaimed dividends in Nigeria had grown to N190bn, representing a 7.35 per cent rise from N177bn recorded in 2021.