GSK raises its stake in India
11.03.2014 - GlaxoSmithKline has increased its holding in its Indian pharma subsidiary.
GlaxoSmithKline (GSK) Pharmaceuticals Limited, one of the oldest pharmaceutical companies in India, announced the voluntary open offer on December 16, 2013. On March 10 2014, GSK plc confirmed it has increased its stake in the Indian company from 50.7% to 75%. The British pharma accepted 20,609,774 shares from the shareholders in its Mumbai-based affiliate. The offer of INR3,100 (€36.72) per share values the transaction at approximately INR64bn (€760m). The final payment for shares tendered and accepted will be completed by March 20, 2014, at which point the British drug maker will acquire full beneficial ownership of the shares tendered.
David Redfern, Chief Strategy Officer at GlaxoSmithKline, said: "We are very pleased with the outcome of this transaction, which further increases our exposure to a strategically important market. It is a significant vote of confidence in the future growth prospects of our pharmaceuticals business in India and underlines GSK’s long-standing commitment to the country."
The open offer, which was managed by HSBC Securities and Capital Markets (India) Private Ltd, commenced on February 18 and closed on March 5. GlaxoSmithKline Pharmaceuticals Limited will remain publicly-listed.