The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of GlaxoSmithKline Pte, Singapore for acquisition of 24.33 percent shares in existing Indian subsidiary company of GSK Group, GlaxoSmithKline Pharmaceuticals, in a deal which is valued at Rs 6,400 crore. The acquisition would be done by way of a voluntary open offer under SEBI (SAST Regulations) in the pharmaceutical sector.
GlaxoSmithKline Pharmaceuticals is already majority owned and controlled by the GSK Group. After the acqusition, holding of the promoter group firm in the Indian subsidiary will go up to 75 per cent from the current level of 50.67 per cent.
GlaxoSmithKline Pharmaceuticals is one oldest pharmaceutical company in India. Internationally it has created many brands such as Ribena, Horlicks, Lucozade, Aquafresh, Sensodyne, Panadol, Tums and Zovirax, among others. It employs 5,000 people and has turnover of more than $1 billion in India.
