GlaxoSmithKline (GSK) has increased its stake in its publicly-listed Indian consumer healthcare subsidiary, GlaxoSmithKline Consumer Healthcare, to 72.5 per cent from 43.2 per cent, deepening its footprint in emerging markets and non-prescription products.
David Redfern, GSK's chief strategy officer, said on Tuesday the transaction - valued at Rs 4,800 crore or 568 million pounds - would further increase 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," he added.
Britain's biggest drugmaker announced plans to acquire larger holdings in both its Indian and Nigerian consumer product businesses in November.
GSK offered Rs 3,900 per share for stock in Indian-based GlaxoSmithKline Consumer Healthcare during a tender period that ran from January 17 to January 30, with the final payment due on or before February 13. The open offer was managed by HSBC.
Shares in the Indian company were 2 per cent lower at Rs 3,750 following news of the open offer result, while GSK was 0.5 per cent higher, ahead of the group's full-year results on Wednesday.
The drugmaker's Indian arm sells popular brands such as health drink Horlicks, malt-based drink Boost and a multi-vitamin drink VitaHealth, which is marketed to women.
In Nigeria, GSK's plans to raise its holding in GlaxoSmithKline Consumer Nigeria Plc to 80 per cent in a 15.4 billion naira deal are still progressing.
Copyright @ Thomson Reuters 2013
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