Glaxo Smithkline

[emmanuel ewumi]

The foreign investors will increase their stakes in the company by issuing a convertible bond in their own favour., And the bond will be issued in dollars or pounds.

[goldsun]

Originally Posted by emmanuel ewumi

Nobody, but the Nigerian investors. if Nigerian investors will stand up and fight, you will find out that the plan will not materialise.

if they are buying on the floor of the exchange people can choose not to sell

[emmanuel ewumi]

Originally Posted by goldsun

if they are buying on the floor of the exchange people can choose not to sell

That is why they will not buy on the floor. Buying on the floor can make the price of the stock to move to about N60. Increasing your holding from about 45% to 80% is not an easy task, especially if you want to do it on the floor.

[goldsun]

Originally Posted by emmanuel ewumi

The foreign investors will increase their stakes in the company by issuing a convertible bond in their own favour., And the bond will be issued in dollars or pounds.

for now they don't have the simple majority, so they can't make that decision on thier own. The question is, does the company need the fund and what do they need it for?

[emmanuel ewumi]

With 80% stake in the company, they can afford to do and undo. The next stage is for them to delist the company from the exchange. If shareholder activists, can put their acts together, the foreign investors may not succeed with their plan.

[emmanuel ewumi]

Originally Posted by manemi

The parent company is actually investing the money by buying up shares to increase its stake from 46% to 80%. They are just going to take away more profits from Nigeria, while not investing to expand operations of the company. As a Nigerian investor I think this is not positive.

It is not good for the Nigerian investors and the economy as a whole.

[emmanuel ewumi]

Originally Posted by goldsun

for now they don't have the simple majority, so they can't make that decision on thier own. The question is, does the company need the fund and what do they need it for?

That is why, I said if the other investors can come together and fight, the plan of the foreign investors will not materialise. But they can plan to denominate the right issue or convertible bond in foreign currency. That is when they will capitalise on the investors that can not raise the funds in the foreign currency.

[goldsun]

Originally Posted by emmanuel ewumi

That is why, I said if the other investors can come together and fight, the plan of the foreign investors will not materialise. But they can plan to denominate the right issue of convertible bond in foreign currency. That is when they will capitalise on the investors that can not raise the funds in the foreign currency.

This is too risky for nigerian investor. If they want to increase their exposure to nigeria, they should convert to naira

[emmanuel ewumi]

Originally Posted by goldsun

This is too risky for nigerian investor. If they want to increase their exposure to nigeria, they should convert to naira

It is deliberate, they don't want the average investor to take part in the fund raising.

[nosa2]

Originally Posted by emmanuel ewumi

It is not good for the Nigerian investors and the economy as a whole.

Why?

[ayufun]

it is time for those who have the money to invest and the patience to wait for like six month to rake the profit GSK would generate.

[goldsun]

Originally Posted by ayufun

it is time for those who have the money to invest and the patience to wait for like six month to rake the profit GSK would generate.

read oga emma post. There would would be no rally. If there were to be, it would have started

[emmanuel ewumi]

Originally Posted by nosa2

Why?

A situation whereby some foreigners want to take over a company through the back door is not good enough. The money needed for the expansion can be raised in Nigeria by the current shareholders or Nigerian Institutional investors.

[emmanuel ewumi]

Originally Posted by goldsun

read oga emma post. There would would be no rally. If there were to be, it would have started

There could be a short term rally based on the information, but i don't see a sustainable rally. The foreign investors will not buy on the floor of the exchange, they will rather invest more money in the company which will be later converted into shares.

[horlads]

Originally Posted by emmanuel ewumi

There could be short term rally based on the information, but i don't see a sustainable rally. The foreign investors will not buy on the floor of the exchange, they will rather invest more money in the company which will be later converted into shares.

The rally has happened already....check it's performance this quarter. It will cool off today...

[emmanuel ewumi]

Originally Posted by horlads

The rally has happened already....check it's performance this quarter. It will cool off today...

Is it performance as per share price, or financials.

[horlads]

Originally Posted by emmanuel ewumi

Is it performance as per share price, or financials.

Share price na...abi wasn't it a rally in share price that was being discussed..???

[goldsun]

Originally Posted by horlads

The rally has happened already....check it's performance this quarter. It will cool off today...

i guess insider information has fool some people

[nosa2]

Originally Posted by emmanuel ewumi

A situation whereby some foreigners want to take over a company through the back door is not good enough. The money needed for the expansion can be raised in Nigeria by the current shareholders or Nigerian Institutional investors.

If you call what GSK did "thru the back door" then what'll you you call the OANDO deal, GSK has done nothing wrong and I don't even see any adverse effect to the economy in fact it's bringing in much needed FDI.

[emmanuel ewumi]

I just read the public announcement from GSK in today's punch that they want to increase their holdings to 80%. They hope to buy from investors at N48 per shares.
There are some legal terms in the notice that may require legal advice.