GSK to increase its stakes in India and Nigeria
Global drugmaker, GlaxoSmithKline, is to reduce its reliance on traditional drug markets in Europe and USA and increase its footprint in the emerging markets. GSK is to spend over US $1 billion to increase its stakes in its consumer healthcare subsidiaries in India and Nigeria.
GSK will increase its share of its publicly-listed Consumer Healthcare subsidiary in India from 43.2% to up to 75% at a price of INR 3,900 per share. GSK’s Indian subsidiary generated over INR 28 billion turnover in the financial year of 2011. Subject to regulatory clearance, this deal is expected to start in January 2013.
“GSK Consumer Healthcare is a well established business in India and its leading product, Horlicks, is an iconic household brand. 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.”
David Redfern, Chief Strategy Officer, GSK.
GSK has also reached an agreement with GSK Consumer Nigeria PLC, whereby GSK would increase its ownership in the company from 46.4% to 80%. GSK Consumer Nigeria PLC is engaged in the manufacture, marketing and distribution of a wide range of consumer healthcare brands, including Panadol, Sensodyne, Horlicks and Lucozade. The company also sells several pharmaceutical products, such as vaccines and antibiotic, augmentin.
GSK’s boost in Nigeria and India (The Independent)
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