GSK spends Rs 4,800 cr to raise India subsidiary stake

Increases stake to 72.5% from 43.2% earlier, deepens footprint in emerging markets

GlaxoSmithKline Plc has lifted its stake in its publicly-listed Indian consumer healthcare subsidiary to 72.5% from 43.2%, deepening its footprint in the emerging markets and non-prescription products.

"We are very pleased with the outcome of this transaction, which will further increase our exposure to a key emerging market," GSK Chief Strategy Officer David Redfern said.

He further added, "It is a significant vote of confidence in the long-term growth prospects of our consumer healthcare business in India."

During the offer period, which commenced on January 17, 2013 and closed on January 30, 2013, shareholders of GlaxoSmithKline Consumer Healthcare Ltd validly tendered about 1.23 crore shares representing 29.3% of the total shares outstanding, the company said.

 

The offer of Rs 3,900 per share puts the transaction at around Rs 4,800 crore, it added.

"The final payment for shares tendered and accepted will be completed on or before February 13, at which point GlaxoSmithKline Pte Ltd would acquire full beneficial ownership of the shares tendered in the open offer," it said.

The open offer, which was first announced on November 26 2012, is being managed by HSBC Securities and Capital Markets (India) Pvt Ltd.