GSK spends $900 million to raise India subsidiary stake

LONDON Tue Feb 5, 2013 2:43pm IST

A GlaxoSmithKline logo is seen outside one of its buildings in west London, February 6, 2008. REUTERS/Toby Melville/Files

A GlaxoSmithKline logo is seen outside one of its buildings in west London, February 6, 2008.

Credit: Reuters/Toby Melville/Files

Related Topics

Stocks

   

LONDON (Reuters) - GlaxoSmithKline Plc (GSK.L) has lifted its stake in its publicly-listed Indian consumer healthcare subsidiary to 72.5 percent from 43.2 percent, deepening its footprint in emerging markets and non-prescription products.

David Redfern, GSK's chief strategy officer, said on Tuesday the transaction - valued at 48 billion Indian rupees or 568 million pounds - would further increase exposure to a key emerging market.

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

Britain's biggest drugmaker announced plans to acquire larger holdings in both its Indian and Nigerian consumer product businesses in November.

GSK offered 3,900 rupees per share for stock in Indian-based GlaxoSmithKline Consumer Healthcare Ltd (GLSM.NS) during a tender period that ran from January 17 to January 30, with final payment due on or before February 13. The open offer was managed by HSBC.

Shares in the Indian company were 2 percent lower at 3,750 rupees following news of the open offer result, while GSK was 0.5 percent higher, ahead of the group's full-year results on Wednesday.

The drugmaker's Indian arm sells popular brands such as health drink Horlicks, malt-based drink Boost and a multi-vitamin drink VitaHealth, which is marketed to women. It also markets OTC (over-the-counter) drugs such as paracetamol tablet Crocin, painkiller gel Iodex and acidity reliever Eno.

In Nigeria, GSK's plans to raise its holding in GlaxoSmithKline Consumer Nigeria Plc (GLAXOSM.LG) to 80 percent in a 15.4 billion naira deal are still progressing.

(Reporting by Ben Hirschler; Editing by Mark Potter)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Cipla Shares

Cipla Shares

Cipla jumps after key generic launch.  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit.  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks.  Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter.  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage