Following the voluntary open offer undertaken by its subsidiary, GlaxoSmithKline, GlaxoSmithKline plc (GSK) has increased its stake in its publicly-listed pharmaceuticals subsidiary in India (GlaxoSmithKline Pharmaceuticals), from 50.7 per cent to 75 per cent. GlaxoSmithKline Pharmaceuticals will remain publicly-listed.
David Redfern, Chief Strategy Officer, GSK said, “We are 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 pharma business in India and underlines GSK’s long-standing commitment to the country.”
GlaxoSmithKline accepted 20,609,774 shares from the shareholders of GlaxoSmithKline Pharmaceuticals, representing 24.33 per cent of the total shares outstanding through the open offer, which commenced on February 18, 2014 and closed on March 5, 2014.
The offer of Rs 3,100 per share values the transaction at approximately Rs 64 billion or £625 million (based on prevailing foreign exchange rates). The final payment for shares tendered and accepted will be completed on or before March 20, 2014, at which point GlaxoSmithKline will acquire full beneficial ownership of the shares tendered in the open offer.
The open offer was announced on December 16, 2013 and is being managed by HSBC Securities and Capital Markets (India).
EP News Bureau – Mumbai