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GlaxoSmithKline plc has increased its stake in its publicly-listed pharmaceuticals subsidiary in India (GlaxoSmithKline Pharmaceuticals Limited) from 50.7% to 75%, following by the recent open offer.
GlaxoSmithKline Pharmaceuticals Limited will remain publicly-listed. The offer of Rs 3,100 per share values the transaction at approximately Rs 6,400 cr ($625 million).
GlaxoSmithKline Pte Ltd accepted 20.6 million shares from the shareholders of GlaxoSmithKline Pharmaceuticals Limited, representing 24.33% of the total shares outstanding through the Open Offer, which commenced on 18 February 2014 and closed on 5 March 2014.
At present, GSK Pharma shares are traded at Rs 2,505.5, down by 5.43% on BSE.
David Redfern, chief strategy officer, GSK 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."
