GlaxoSmithKline (GSK) Bangladesh Limited closed pharmaceutical business with a view to maximizing profit in the long run and continues its consumer healthcare business in Bangladesh.
Unilever is set to acquire 9,875,144 or 82% shares of GlaxoSmithKline (GSK) Bangladesh Limited for Tk1,604 crore as part of the GSK’s move to divest Horlicks and other consumer healthcare nutrition brands to Unilever.
General and institutional investors own the rest 18% shares of GSK Bangladesh, a listed company, according to a statement posted on Tuesday on the Dhaka Stock Exchange (DSE) website.
“The company has informed that the Board of Directors has been informed vide a notification letter on December 03, 2018 from SETFIRST Limited (Setfirst), a shareholder/member of the Company, that Setfirst has signed a Share Purchase Agreement (SPA) on December 03 this year,” reads the statement.
It also says: “To sell and dispose 9,875,144 shares in the company to Unilever. The transaction is subject to the satisfaction or waiver of the conditions precedents in the SPA (including necessary regulatory formalities and approval in accordance with the laws of Bangladesh).”
The transaction covers GSK’s health food and drinks portfolio in India, Bangladesh and 20 other predominantly Asian markets. The business has annual sales of around €550 million, primarily through the malt-based Horlicks and Boost brands.
In India, Horlicks and other nutrition products are sold by GSK India, a public company listed on the National Stock Exchange and Bombay Stock Exchange in which GSK holds a 72.5% stake.
Earlier, GSK Bangladesh closed pharmaceutical business with a view to maximizing profit in the long run and continues its consumer healthcare business in Bangladesh.
The total consideration is valued at approximately £3.1 billion based on the 15-day volume weighted average price (VWAP) ended on Friday of HUL shares of ₹1,717. Net proceeds are estimated to be approximately £2.4 billion on the same basis.