GSK set to increase stake in Indian subsidiary

GSK has offered to increase its stake in GSK Consumer Healthcare in India.

GlaxoSmithKline (GSK) has offered to increase its stake in its Consumer Healthcare subsidiary in India.
At present, the pharmaceutical and healthcare giant holds a 43.2 per cent stake in the Indian company.

It has initiated a voluntary open offer to increase this stake to up to 75 per cent at a price of INR 3,900 per share.

This means it may acquire up to 13,389,410 shares at a premium of around 28 per cent on top of the company's closing share price on India's national stock exchange on November 23rd 2012.

David Redfern, chief strategy officer at GSK, described the Indian subsidiary GSK Consumer Healthcare as a "well-established business".

"This transaction represents a further step in GSK's strategy to invest in the world's fastest growing markets and, we believe, offers a liquidity opportunity at an attractive premium for existing shareholders," he remarked.

GSK's Consumer Healthcare business in India employs around 3,200 people and turned over more than INR 28 billion in the 2011 financial year.

The proposed transaction is likely to be valued at approximately INR 52.2 billion.