GlaxoSmithKline has announced plans to increase its stake in its Indian subsidiary in a move designed to increase its foothold in the emerging market.
The UK drugs giant said this morning (Monday) that it is seeking to boost its share of GlaxoSmithKline Pharmaceuticals Limited - which manufactures, distributes and commercialises pharmaceuticals and vaccines across multiple therapeutic areas - from 50.7% to up to 75%.
Under the deal, GSK wants to acquire 20,609,774 shares at a premium of around 26% to the closing share price on the National Stock Exchange of India Ltd on December 13, equating to around £629 million.
The transaction will be funded through its existing cash resources, the firm said, also noting that the move will be "earnings neutral for the first year and accretive thereafter".
David Redfern, Chief Strategy Officer at GSK, said the move further demonstrates the firm's long-term commitment to India and "will increase exposure to a strategically important market".
The offer period is expected to begin in February next year.