LONDON - GlaxoSmithKline said Monday that it had increased its stake in its Indian pharmaceutical subsidiary to 75 percent, in a transaction valued at more than $1 billion.
The British drug maker said that it had paid 64 billion rupees, or $1.05 billion, to increase its stake in GlaxoSmithKline Pharmaceuticals Limited to 75 percent, up from 50.7 percent. The Indian unit will continue to trade publicly after the deal.
“We are very pleased with the outcome of this transaction, which further increases our exposure to a strategically important market,†David Redfern, chief strategy officer of GlaxoSmithKline, said in a statement. “It is a significant vote of confidence in the future growth prospects of our pharmaceuticals business in India and underlines GSK’s longstanding commitment to the country.â€
The British drug maker offered to pay 3,100 rupees a share as part of an open offer to shareholders between Feb. 18 and March 5.
The final payment for shares sold to Glaxo will be completed by March 20. The British company will acquire more than 20 million shares of the Indian subsidiary as part of the transaction.
