GSK increases stake in Indian Pharmaceuticals subsidiary to 75 per cent after Open Offer
Issued: London UK – LSE Announcement
GlaxoSmithKline plc (LSE:GSK) announced today 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 18 February 2014 and closed on 5 March 2014.
The offer of INR 3,100 per share values the transaction at approximately INR 64 billion or £625 million (based on prevailing foreign exchange rates). The final payment for shares tendered and accepted will be completed on or before 20 March 2014, at which point GlaxoSmithKline Pte Ltd will acquire full beneficial ownership of the shares tendered in the Open Offer.
The Open Offer was announced on 16 December 2013 and is being managed by HSBC Securities and Capital Markets (India) Private Limited.
GSK – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit www.gsk.com.
Cautionary statement regarding forward-looking statements
GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Such factors include, but are not limited to, those described under Item 3.D 'Risk factors' in the company's Annual Report on Form 20-F for 2013.