Glaxo Plc's open offer for GSKCH to start on Jan 17

GlaxoSmithKline Plc

The UK-based GlaxoSmithKline Plc's open offer to acquire 31.8 per cent stake in its Indian subsidiary GlaxoSmithKline Consumer Healthcare will begin on January 17 next year.

The open offer would begin on January 17 and close on January 30, GlaxoSmithKline Consumer Healthcare Ltd (GSKCH)said in a regulatory filing to the BSE.

The UK-parent had made an offer to acquire up to 13,389,410 shares, representing 31.8 per cent of the total outstanding shares of the India consumer business GlaxoSmithKline Consumer Healthcare Ltd.

The firm would buy the shares at Rs 3,900 apiece taking the potential total value of the transaction to about Rs 5,220 crore.

Shares of GSKCH today closed at Rs 3,790 apiece, up 1.84 per cent on the BSE.

Last month, GlaxoSmithKline had offered to hike stake in its GlaxoSmithKline Consumer Healthcare to up to 75 per cent.

The transaction, which will be funded through GSK's existing cash resources, will be earnings neutral for the first year and accretive thereafter and will not impact expectations for the group's long-term share buyback programme.

As on quarter ended September 30, the foreign promoter of GSKCH held 43.2 per cent stake in the company while the public shareholding was at 56.84 per cent.

Securities regulations in India require a minimum public shareholding of 25 per cent for a company to maintain a public listing in the country.

GSK's Consumer Healthcare business in India generated over Rs 2,800 crore turnover in the financial year ended 31 December, 2011. The company employs nearly 3,200 people.

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