Millennium Post

UK’s GlaxoSK ups India arm stake to 75 per cent via Rs 6,400-cr open offer

‘...following the voluntary open offer undertaken by its subsidiary, GlaxoSmithKline Pte Ltd, GSK has successfully increased its stake in its publicly listed pharmaceuticals subsidiary in India (GlaxoSmithKline Pharmaceuticals Ltd), from 50.7 per cent to 75 per cent,’ GSK said in a statement. GlaxoSmithKline Pharmaceuticals will remain publicly listed, it added.

The offer of Rs 3,100 per share values the transaction at about Rs 64 billion or 625 million (based on prevailing foreign exchange rates), it said.

‘We are very pleased with the outcome of this transaction, which further increases our exposure to a strategically important market,’ GSK Chief Strategy Officer David Redfern said. It is a significant vote of confidence in the growth prospects of the company's pharmaceuticals business in India and underlines GSK's long-standing commitment to the country, he added.

‘GlaxoSmithKline Pte Ltd accepted 20,609,774 shares from the shareholders of GlaxoSmithKline Pharmaceuticals Ltd, representing 24.33 per cent of the total shares outstanding through the open offer, which commenced on 18 February, 2014, and closed on 5 March  , 2014,’ the company said.

The final payment for shares tendered and accepted will be completed on or before 20 March, the company said.

The open offer was announced on 16 December, 2013 and was managed by HSBC Securities and Capital Markets (India) Pvt Ltd.
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