GSK raises stakes in new markets

GlaxoSmithKline plans to spend more than $1bn (£624m) to raise stakes in its Indian and Nigerian consumer healthcare arms, as Britain’s biggest drugmaker deepens its emerging markets and non-prescription consumer health footprint.

By The Newsroom

Published 27th Nov 2012, 06:00 BST

The deals are the latest of several by GSK, which is reducing its reliance on traditional regulated markets in Western economies where sales are slowing.

GSK said yesterday it will buy up to an additional 31.8 per cent stake in India’s GlaxoSmithKline Consumer Healthcare for about $940m by paying 3,900 rupees ($70.16) per share in an open offer. The price was a premium of 28 per cent to the stock’s Friday close.

On similar lines, GSK also said it plans to raise the stake in its Nigerian consumer products unit to 80 per cent from 46.4 per cent now in a $98m deal. Post the offer, GSK’s stake in the Indian consumer products arm, which makes health drinks and over-the-counter drugs and balms, will rise to 75 per cent from 43.2 per cent.

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