Home Companies GSK offloads stake in Hindustan Unilever for over Rs 25,000 crore

GSK offloads stake in Hindustan Unilever for over Rs 25,000 crore

The GSK sale, at an average price of Rs 1,905 per share, is the largest secondary market trade on Indian stock exchanges.

GlaxoSmithKline Plc (GSK) on Thursday sold its 5.7 per cent stake in FMCG major Hindustan Unilever Ltd (HUL) for Rs 25,480 crore. The GSK sale, at an average price of Rs 1,905 per share, is the largest secondary market trade on Indian stock exchanges.

“GSK has, through its subsidiaries GlaxoSmithKline Pte Ltd and Horlicks Ltd, today agreed to the sale of 133,772,044 ordinary shares in HUL at a volume-weighted average price of approximately Rs 1,905 per share, raising gross proceeds of approximately Rs 25,480 crore,” GSK said.

After the transaction, GSK will not hold any HUL shares. The names of the buyers were not immediately known. Glaxo acquired the stake in HUL after the former sold its consumer nutrition business, including brands like Horlicks and Boost, to HUL.

In December 2018, Hindustan Unilever approved a scheme of amalgamation between the company and GlaxoSmithKline Consumer Healthcare Ltd (GSK CH India). The transaction was an all equity merger with 4.39 shares of HUL being allotted for every share in GSK CH India. This transaction valued the total business at Rs 31,700 crore.

“When GSK originally announced the divestment of Horlicks in December 2018, the company expected gross proceeds from the overall transaction to be approximately 3.1 billion pounds and net proceeds to be approximately 2.4 billion pound after hedging costs, taxes and other expenses had been settled,” GSK said in an exchange filing in London.

“With the appreciation of HUL’s share price since then, GSK now expects gross proceeds from the divestment to be 3.4 billion pounds and net proceeds from the divestment to be 2.9 billion pound,” it said. This includes the proceeds received on closing of the transaction on April 1, 2020 and the expected proceeds from the sale of our Bangladesh business, which is expected to close later this year, GSK added.

 

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

RBI gold reserves up 40.4 tonnes in 2019-20, more than half of total holdings held overseas

The RBI’s total gold reserves were 612.56 tonnes in the preceding fiscal ended March 2019. With the addition of more stocks, the value of...

Currency with public continues to swell in line with coronavirus lockdown extension

The rise in currency with the public comes despite appeals by the government and the RBI to use digital payment tools amidst the coronavirus...

ICICI Bank posts 26% rise in Q4 net, sets aside Rs 2,725 cr for COVID-19-related provisions

Gross non-performing assets of the bank fell to 5.53 per cent of advances (Rs 41,409 crore) in Q4 of FY20 from 6.70 per cent...

AIIB clears $500-mn loan to support India’s fight against COVID-19

The project will be implemented by the National Health Mission (NHM), the National Centre for Disease Control (NCDC) and the Indian Council of Medical...

SBI slashes MCLR by 15 bps across all tenors

On March 27, the RBI, in its first COVID package, had slashed the repo rate by 75 bps to 4.40 per cent and cash...
Need Help? Chat with us