GSK ups stake in Indian arm to 72.5% in a Rs4,800-cr stock deal

Global drug firm GlaxoSmithKline Plc has increased stake in its Indian subsidiary GlaxoSmithKline Consumer Healthcare to 72.5 per cent from 43.2 per cent in a stock market transaction worth Rs4,800-crore (about $900 million).

The acquisition, carried out through open offer undertaken by its Indian arm GlaxoSmithKline Pte Ltd, would further increase exposure to a key emerging market, David Redfern, GSK's chief strategy officer, said ina filing with the London Stock Exchange.

"We are very pleased with the outcome of this transaction, which will further increase our 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," said Redfern.

The open offer of Rs3,900 a share, which commenced on 17 January 2013, closed on 30 January 2013.

"During the offer period, shareholders of GSK Consumer Healthcare validly tendered 12.3 million shares representing 29.3 per cent of the total shares outstanding. The offer of Rs3,900 a share values the transaction at Rs4,800 crore or £568 million," according to the filing.

''It is a significant vote of confidence in the long-term growth prospects of our consumer healthcare business in India,'' added Redfern.