GSK pays $1 billion to lift Indian unit stake to 75 pct
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)
- Tweet this
- Share this
- Digg this
- Jindal Steel shelves $10 bln project after coal setback
- West not expected to demand Iran atom bomb "mea culpa" in deal
- U.S. seeks to step up India trade talks after WTO breakthrough
- EU approves Novartis' Signifor drug for rare hormonal disorder
- India targets private cash to build railways to its ports
India is targeting up to $1 billion of private investment by 2017 to build rail lines linking ports and national networks to ease growing congestion, which has delayed coal imports for power plants and contributed to a power supply crisis. Full Article
Hyundai Motor, Kia Motors lift 2014 global sales target on China, emerging markets Full Article