GlaxoSmithKline bets big on emerging markets in $1bn plan to raise stake in India unit


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The Independent Online

Britain’s biggest drug maker, GlaxoSmithKline, has set out plans to raise its stake in its Indian business by up to 75 per cent in a deal worth about £629 million.

Glaxo currently owns 50.7% of its listed Indian subsidiary, but said it would pay Rs3,100 (£30.67) per share — 26% more than the last unaffected closing price — to boost its stake in the emerging market.

It’s Glaxo’s second big investment in India this year, while it also boosted a 40.2% holding in its Indian consumer-health care business — which makes one of the country’s most popular drinks, Horlicks — to 75%.

Chief executive Sir Andrew Witty has made clear his strategy to reduce Brentford-based Glaxo’s reliance on traditional prescription drugs  in Western economies where sales are slowing.