Glaxo to spend US$1 billion to increase stake in its India unit
The company plans to increase its stake from 50.7 per cent to 75 per cent in a deal worth US$ 1 billion.
Mumbai, December 16, 2013: GlaxoSmithKline Plc (GSK) plans to increase its stake in its Indian pharmaceutical unit to up to 75 per cent from 50.7 per cent through an open offer in a deal worth close to 629 million pounds (US$ 1 billion).
With this deal in place, GSK is all set to spend almost US$ 2 billion in an year’s time to increase its holdings in two listed Indian companies, underscoring the British drugmaker’s drive to deepen its footprint in emerging markets.
It may be noted here that the company increase its stake in the publicly-listed Indian consumer healthcare subsidiary, GlaxoSmithKline Consumer Healthcare Ltd, to 72.5 per cent from 43.2 per cent for US$ 901 million in February 2013.
Experts believe that these deals are part of the strategy from GSK in which it is trying to reduce its reliance on traditional prescription drug markets in western economies where sales are slowing down.
GSK’s Indian pharma subsidiary manufactures drugs for various areas covering segments like respiratory, cardiovascular, oncology, anti-infectives and dermatology.