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GSK To Raise Stake In India Unit In Rs 5,220 Cr Deal

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GlaxoSmithKline Plc plans to buy up to an additional 31.8 per cent stake in its Indian consumer products arm GlaxoSmithKline Consumer Healthcare Ltd for Rs 5,220 crore, sending shares of the Indian unit to a record high.
 
GlaxoSmithKline plans to raise its stake in GSK Consumer Healthcare to 75 per cent from 43.2 per cent, paying Rs 3,900 per share through an open offer, it said in a statement. The price represents a premium of 28 per cent to the stock's close on 23 November.
 
The offer period is expected to begin in January 2013.
 
"This transaction represents a further step in GSK's strategy to invest in the world's fastest growing markets and, we believe, offers a liquidity opportunity at an attractive premium for existing shareholders," said David Redfern, chief strategy officer at GlaxoSmithKline.
 
Shares in GSK Consumer Healthcare were locked at Rs 3,659.20, up 20 per cent, their maximum daily trading limit, while the Mumbai market was up 0.23 per cent, by 9:17 a.m.
 
Securities regulations in India require a minimum public shareholding of 25 per cent for a company to maintain a public listing. 
 
(Reuters) 


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