GSK pays $1 billion to lift Indian unit stake to 75 pct

LONDON Mon Mar 10, 2014 12:52pm IST

The GlaxoSmithKline logo is seen at the entrance of a building in Luxembourg, September 10, 2013. Picture taken September 10, 2013 REUTERS/Yves Herman/Files

The GlaxoSmithKline logo is seen at the entrance of a building in Luxembourg, September 10, 2013. Picture taken September 10, 2013

Credit: Reuters/Yves Herman/Files

Related Topics

Stocks

   

LONDON (Reuters) - GlaxoSmithKline (GSK.L) said on Monday it had paid 64 billion rupees to increase its stake in its Indian pharmaceuticals unit to 75 percent, as it banks on rising demand for medicines in emerging markets.

Britain's biggest drugmaker first announced plans to lift the holding in GlaxoSmithKline Pharmaceuticals (GLAX.NS) from 50.7 percent in December. It held an open offer to buy the extra shares at 3,100 rupees each from February 18 to March 5.

Final payment for shares tendered and accepted will be completed by March 20, GSK added.

David Redfern, GSK's chief strategy officer, said the decision to increase exposure to the Indian market was "a significant vote of confidence" in growth prospects for its business in India.

GSK, which has had a presence in India for 90 years, is keen to secure a bigger share of India's growing $14 billion-a-year market, which it views as promising despite recent moves to impose price cuts and limit patents on some medicines.

The open offer was managed by HSBC.

(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

REUTERS SHOWCASE

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Kashmir Package

Kashmir Package

Modi announces relief package for flood-hit Kashmir.  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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