London-based GlaxoSmithKline on Monday launched $940-million open offer to hike its stake in its consumer products company in India -GlaxoSmithKline Consumer Healthcare - from 43.2% to 75%. GSK would pay Rs 3,900 a piece to the shareholders tendering their shares in the open offer, which would begin in January next year. London based company has launched a similar open offer in GlaxoSmithKline ConsumerNigeria Plc to increase its stake to 80%.
The transaction for the consumer products firm would be funded through GSK’s existing cash wealth. It would be earnings-neutral for the first year and accretive thereafter, and will not impact GSK’s long-term share buyback plans.
GSK Consumer Healthcare sells products under brands including, Horlicks, Boost, Viva and Maltova. In over the counter category, it sells Crocin, Eno and Iodex.
