GSK Increases Stake in Indian SubsidiaryBy
GlaxoSmithKline plc announced that following the voluntary open offer undertaken by its subsidiary, GlaxoSmithKline Pte Ltd, GSK has successfully increased its stake in its publicly listed pharmaceuticals subsidiary in India (GlaxoSmithKline Pharmaceuticals Limited), from 50.7% to 75%. GlaxoSmithKline Pharmaceuticals Limited will remain publicly listed.
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.”
GlaxoSmithKline Pte Ltd accepted 20,609,774 shares from the shareholders of GlaxoSmithKline Pharmaceuticals Limited, representing 24.33% of the total shares outstanding through the open offer, which commenced on February 18, 2014 and closed on March 5, 2014.
The offer of INR 3,100 per share values the transaction at approximately INR 64 billion or Â£625 million (based on prevailing foreign exchange rates). The final payment for shares tendered and accepted will be completed on or before March 20, 2014, at which point GlaxoSmithKline Pte Ltd will acquire full beneficial ownership of the shares tendered in the open offer.