GSK's $1 billion share tender offer for Indian unit to start February 18

MUMBAI Mon Feb 10, 2014 6:16am EST

A woman walks past a GlaxoSmithKline Pharmaceuticals Ltd logo outside their headquarters in Mumbai December 16, 2013. REUTERS/Danish Siddiqui

A woman walks past a GlaxoSmithKline Pharmaceuticals Ltd logo outside their headquarters in Mumbai December 16, 2013.

Credit: Reuters/Danish Siddiqui

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MUMBAI (Reuters) - GlaxoSmithKline Plc's (GSK) (GSK.L) share tender offer worth $1 billion to raise its stake in the Indian unit will start on Feb 18th and end of March 5th, the manager to the offer said in a notice to the exchanges on Monday.

GSK plans to raise its stake to as much as 75 percent from 50.7 percent in GlaxoSmithKline Pharmaceutical (GLAX.NS) through the offer, betting on an increase in healthcare spending in emerging markets.

The British parent company is looking to buy up to 20.6 million shares of the Indian unit at 3,100 rupees a share. Shares of GlaxoSmithKline Pharmaceutical ended up 0.3 percent at 2,981.90 rupees on Monday.

HSBC Holdings Plc (HSBA.L) is the issue manager.

($1 = 62.3600 Indian rupees)

(Reporting by Archana Narayanan; Editing by Sumeet Chatterjee)

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