GSK to increase its stake in India subsidiary from 43.2% to 72.5%

Pharmaceutical and consumer health care company GlaxoSmithKline (GSK) has announced that it has pumped an additional investement of INR48bn ($900.86m) into its Indian subsidiary GlaxoSmithKline Consumer Healthcare to increase its stake to 72.5%.

GSK said through the transaction carried by its arm GlaxoSmithKline in the open offer, it has increased its stake in GlaxoSmithKline Consumer Healthcare from 43.2% to 72.5%, which is its publicly-listed consumer healthcare subsidiary in India.

GSK chief strategy officer David Redfern said the firm is happy with the outcome of the new transaction, which will further increase its 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," Redfern added.

The firm has offered its initial plan to increase the stake on 26 November 2012, and carried it from 17 January 2013 through to 30 January 2013.

Stakeholders of GlaxoSmithKline Consumer Healthcare validly tendered about 12.3 million shares representing 29.3% of the total shares outstanding.

The firm has offered an initial value of INR3,900 ($73.19) per share values the transaction at around INR48bn ($900.86m).

The company said that the final payment for shares tendered and accepted will be completed on or before 13 February, on that point GlaxoSmithKline would acquire full beneficial ownership of the shares tendered in the open offer.

GlaxoSmithKline is a UK-based pharmaceutical and consumer health care company, whose Indian arm sells popular OTC (over-the-counter) drugs such as paracetamol tablet Crocin, painkiller gel Iodex and acidity reliever Eno.

Apart from this, the drugmaker also offers health drink Horlicks, malt-based drink Boost and a multi-vitamin drink VitaHealth, which is marketed to women in India.