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GlaxoSmithKline has increased its stake in its Indian subsidiary, GlaxoSmithKline Consumer Healthcare Ltd, from 43.2% to 72.5%.
GlaxoSmithKline has increased its stake in its Indian subsidiary, GlaxoSmithKline Consumer Healthcare Ltd, from 43.2% to 72.5%. GSK hopes that the transaction will increase the company’s exposure to India, which it describes as a key emerging market. The tender offer for the shares was undertaken by GSk’s subsidiary in Singapore, GlaxoSmithKline Pte. Ltd.
The offer was first announced in November 2012 and commenced on 17 January 2013. According to a press statement, shareholders of GlaxoSmithKline Consumer Healthcare Ltd tendered shares representing 29.3% (12,319,749) of the total outstanding shares.
The offer of 3900 Indian Rupees ($73.22) values the transaction at approximately $90 million. The final payment for shares tendered and accepted will be completed on or before February 13 2013. After this point, GlaxoSmithKline Pte. Ltd, will acquire full beneficial ownership of the shares tendered in the offer.
In a statement, David Redfern, chief strategy office at GSK, said, “We are very pleased with the outcome of this transaction, which will further increase our 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.”