New Delhi -°C
Today in New Delhi, India

Jun 03, 2020-Wednesday
-°C

Humidity
-

Wind
-

Select city

Metro cities - Delhi, Mumbai, Chennai, Kolkata

Other cities - Noida, Gurgaon, Bengaluru, Hyderabad, Bhopal , Chandigarh , Dehradun, Indore, Jaipur, Lucknow, Patna, Ranchi

ADVERTISEMENT
Home / Business News / Glaxo to sell $3.9 billion stake in HUL

Glaxo to sell $3.9 billion stake in HUL

The two multinational giants had announced the all-share deal worth ₹31,700 crore in December 2018. Bloomberg first reported on Wednesday that GSK was in discussions with its advisers on when to launch the transaction.

business Updated: Apr 30, 2020 05:55 IST
Swaraj Singh Dhanjal
Swaraj Singh Dhanjal
Hindustan Times, Mumbai
GSK Consumer Healthcare’s brands such as Horlicks, Boost and Maltova are now part of HUL’s food and refreshments business in the nutrition category.
GSK Consumer Healthcare’s brands such as Horlicks, Boost and Maltova are now part of HUL’s food and refreshments business in the nutrition category.(Reuters)

GlaxoSmithKline Plc (GSK) will soon begin selling its stake in Hindustan Unilever Ltd (HUL) estimated to be worth almost ₹29,850 crore ($3.9 billion), a person aware of the development said. GSK’s received the shares earlier this month in return for the sale of its Indian consumer business to HUL. The two multinational giants had announced the all-share deal worth ₹31,700 crore in December 2018. Bloomberg first reported on Wednesday that GSK was in discussions with its advisers on when to launch the transaction.

In a statement, Glaxo said HUL has paid it an extra ₹3,045 crore to acquire the Horlicks brand for India, after seeking approval from the board of HUL, exercising the option available in the original agreement made between Unilever and GSK.

GSK Consumer Healthcare’s brands such as Horlicks, Boost and Maltova are now part of HUL’s food and refreshments business in the nutrition category. As part of the merger, 3,500 GSK employees will also become part of the Indian arm of the Anglo Dutch giant Unilever. Under the deal, HUL will distribute GSK’s brands such as Eno, Crocin, Sensodyne etc in the country.

“GSK’s intent was to start selling its shares as and when the merger was consummated. They will sell the shares in parts over a period of time, given the size of the stake they hold. Investment banks JP Morgan, Morgan Stanley and others are advising GSK on this share sale,” the person cited earlier said, requesting anonymity as he is not authorised to speak to reporters.

GSK did not respond to a request for comment.

No final decision has been taken on the timing of the proposed sale, and Glaxo could decide to postpone the sale, Bloomberg reported.

ht epaper

Sign In to continue reading