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GSK raises stake in Indian unit to 75 pc.

GLAXOSMITHKLINE ( GSK) on Monday has paid ` 6,400 crore to raise its stake in its Indian pharmaceutical subsidiary to 75 per cent reflecting its bullish outlook on the country's growing market.

" Following the voluntary open offer undertaken by GlaxoSmithKline Pte Ltd, GSK has successfully increased its stake in its publicly listed pharmaceuticals subsidiary in India from 50.7 per cent to 75 per cent," GSK said in a statement.

GSK held an open offer to buy the extra shares at ` 3,100 each from February 18 to March 5.

GlaxoSmithKline Pte Ltd accepted 20,609,774 shares from the shareholders of GlaxoSmithKline Pharmaceuticals Ltd representing 24.33 per cent of the total shares outstanding through the open offer, which commenced on February 18, 2014, and closed on March 5, 2014, the company said. The final payment for shares tendered and accepted will be completed on or before March 20. The open offer was announced on December 16, 2013, and was managed by HSBC Securities and Capital Markets ( India) Pvt Ltd.

David Redfern, GSK's chief strategy officer, said that the decision to increase exposure to the Indian market " is a significant vote of confidence in the growth prospects of the company's pharmaceuticals business in India and underlines GSK's long- standing commitment to the country". GSK, which has had a presence in India for 90 years, is keen to secure a bigger share of India's growing $ 14 billiona- year market, which it views as promising despite recent moves to impose price cuts and limit patents on some medicines.

The company makes, distributes and sells respiratory, cardiovascular and cancer drugs, antibiotics and vaccines in India.

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Publication:Mail Today (New Delhi, India)
Geographic Code:9INDI
Date:Mar 11, 2014
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