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GSK initiates open offer to increase stake in Consumer Healthcare unit in India

GlaxoSmithKline announced a Voluntary Open Offer to increase its stake in its publicly-listed Consumer Healthcare subsidiary in India from 43.2% to up to 75% at a price of INR 3,900 per share. Securities regulations in India require a minimum public shareholding of 25% for a company to maintain a public listing in the country.The Offer, which is made pursuant to the rules of the Securities and Exchange Board of India, is to acquire up to 13,389,410 shares, representing 31.8% of the total outstanding shares of the Indian Company. The transaction will be funded through GSK’s existing cash resources, will be earnings neutral for the first year and accretive thereafter and will not impact expectations for the Group’s long-term share buyback program.