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news.UK-based GlaxoSmithKline (GSK) is planning to spend Rs52.2bn ($940m) to raise stake in Indian consumer healthcare subsidiary GlaxoSmithKline Consumer Healthcare from 43.2% to around 75% at a price of Rs3,900 ($70.15) per share through a voluntary open offer.
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The offer is intended to purchase around 13,389,410 shares and is in accordance with the rules of the Securities and Exchange Board of India.
GSK’s Indian consumer products arm offers health drinks and over-the-counter drugs and balms.
GlaxoSmithKline chief strategy officer David Redfern said, "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."
The offer period is expected to commence in January 2013, upon regulatory clearance. HSBC Securities and Capital Markets (India) Private Limited is managing the offer.
Company also considers spending NGN15.4bn ($96.99m) to increase stake in Nigerian consumer products unit to 80% from 46.4% at an offer price of NGN48 ($0.30) per share.
Citigroup Global Markets is serving as financial adviser concerning the offer to the company.
GSK Nigeria chairman Chief Olusegun Osunkeye said, "The Board of Directors unanimously believes that the Proposal is in the best interests of the continued growth of the Company, the shareholders, employees and customers, the community and Nigeria and intends to recommend it to shareholders."