GSK Consumer Healthcare share buyback opens on 17 January

GlaxoSmithKline Plc's open offer to acquire 31.8 per cent of outstanding stake in its Indian subsidiary GlaxoSmithKline Consumer Healthcare will begin on 17 January and close on 30 January 2013, GlaxoSmithKline Consumer Healthcare Ltd said in a regulatory filing today.

The UK parent has offered to acquire up to 1,33,89,410 shares, representing 31.8 per cent of the share capital of its India business GlaxoSmithKline Consumer Healthcare Ltd.

GSK will buy shares at Rs3,900 apiece taking the potential total value of the transaction to about Rs5,220 crore.

Shares of GSKCH today closed at Rs2,044.95 on BSE, up 11.25 (0.55%) while on the NSE the share closed at Rs2,050.95, up 9.60 (0.47%) from the previous close.

GlaxoSmithKline plans to raise stake in GlaxoSmithKline Consumer Healthcare to 75 per cent in a transaction funded through GSK's existing cash resources.

The share buyback 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, the company said.