Companies & Sectors
GSK Pharma hits all time high on open offer from parent

GlaxoSmithKline Pharmaceuticals’ parent GSK Plc along with GSK Pte voluntarily offered to buy additional 24.33% at Rs3,100 per share driving the share price of the Indian company to an all time high

GlaxoSmithKline Pharmaceuticals Ltd hit its all time high of Rs2,952 in early trade on Monday on news of a voluntary open offer its United Kingdom-based parent company—GlaxoSmithKline plc (GSK plc) along with Singapore-based GlaxoSmithKline Pte Ltd (GSK Pte).
 

Both the companies, will acquire additional 24.33% stake from public at Rs3,100 per share. Prior this open offer, the parent company was holding about 50.67% of the voting share capital.
 

The open offer is a voluntary offer in terms of Regulation 6 of the SEBI Regulations, 2011. This open offer is not subject to any minimum level of acceptance. The open offer price will be payable in cash by GSK Pte, in accordance with the provisions of Regulation 9(1)(a) said HSBC Securities and Capital Markets (India) Private Ltd, a  underwriter to the open offer, in corporate filing to BSE.
 

On 14 November 2013, GSK Plc announced plans to set up Rs864 crore pharmaceutical manufacturing units in India. In the last decade GSK Plc has invested Rs1,017 crore in India through its unit GlaxoSmithKline Pharmaceuticals.
 

Further details of the open offer will be published on or before 23 December 2013 in a detailed public statement.
 

At 12.01pm, GlaxoSmithKline Pharma was trading 18.9% higher at Rs2934 on the BSE, while the 30-share benchmark was marginally down at 20,714.

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Torrent Pharma acquires Elder’s Indian branded formulation business for Rs2,004 crore
Torrent strengthened its position in Indian market by acquiring Elder’s Pharmaceutical women healthcare and pain management business
 
Torrent Pharmaceuticals Ltd (Torrent) have entered into a definitive binding agreement with Elder Pharmaceuticals Ltd (Elder) to acquire Elder’s branded formulation business in India and Nepal for Rs2,004 crore. 
 
“This pathbreaking domestic consolidation by Torrent addresses our recent challenges and will significantly help Elder leverage its balance sheet.” Said, Elder chief executive officer and managing director, Alok Saxena "The transaction is a strategic fit for Torrent and will strengthen its core prescription-based business. This acquisition strengthens our position in the women healthcare, pain management & vitamins, nutrition segments by enhancing and accelerating market access. It is also expected to enable cost & revenue synergies in Torrent's domestic formulations business," said Torrent Group chairman Sudhir Mehta.
 
Elder's existing brand equity in the areas of women healthcare and pain management will help Torrent strengthen its position in the Indian market expanding into these fast growing areas, said Torrent in their filing with stock exchanges.
 
Torrent would fund the acquisition through a mix of internal accruals and bank borrowings. Under the proposed transaction, Elder will continue to manufacture & supply the products at its existing manufacturing facilities for Torrent for a period of three years.  Torrent said, the transaction has been approved by the boards of both the companies and is subject to approval by shareholders and other necessary regulatory nods. The deal is expected to close in the first half of 2014.
 
On Friday, Share prices of Torrent Pharmaceuticals Ltd closed 4.04% down at Rs479.50 on BSE. Elder Pharmaceuticals share prices closed 8.17% down at Rs298.30 on BSE, While benchmark S&P BSE Sensex closed 210 points down at 20,715.
 

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Financial Services business devoid of ethics: Survey

A new survey reveals a stunning lack of ethics, poor regulation and lack of knowledge of participants afflicting the financial services industry

The financial services industry has an ethics problem, according to a new report published by Economist Intelligence Unit (a part of the The Economist group) in association with CFA Institute. The issue of ethics has been hotly debated after...

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