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GSK increases stake in Indian pharma operations

Ups share holding in its Indian subsidiary

GlaxoSmithKline GSKGlaxoSmithKline is set to pay around £629m ($1bn) to raise its stake in its Indian pharmaceuticals subsidiary.

GSK has begun a voluntary open offer to take its holding in GlaxoSmithKline Pharmaceuticals Limited from 50.7 per cent to up to 75 per cent - the maximum share GSK can hold and still keep the company publicly-listed under Indian rules.

Chief strategy officer David Redfern said the transaction will increase GSK's exposure to a “strategically important market”.

He added: “Today's announcement is a further demonstration of our long-term commitment to the country having increased our holding in our consumer business earlier this year and more recently committed to a significant manufacturing investment.”

The transaction will be funded through existing cash resources and will be earnings neutral for the first year and accretive thereafter, GSK said.

GSK employs more than 5,000 people within its Indian operations, which last year turned over more than 26bn Indian rupees (approximately £313m).

The country has long been earmarked as a priority area for GSK and this year the company spent $900m upping its stake in its Indian consumer healthcare business and formed a vaccines joint venture with Hyderabad-based firm Biological E to develop a six-in-one combination paediatric vaccine.

16th December 2013

From: Sales

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