GlaxoSmithKline (GSK) is cashing in a 5.7% stake it took in Hindustan Unilever, which produces everything from deodorant to soup, as payment for the sale of its malted drink brand Horlicks and other nutrition brands to Unilever in 2018.
In the statement, GSK said it would now receive net proceeds of 2.9 billion pounds ($3.59 billion) from the stake sale and the sale of its Bangladesh business, which is expected to close later this year.
The deal eclipses the previous block trade record in India when Daiichi Sankyo sold its $3.18 billion stake in Sun Pharmaceuticals in April 2015, according to Refinitiv. On a global basis, the Glaxo block trade will be the 10th ever biggest, according to the data provider.
Earlier this year, GSK launched a two-year programme to split into two entities, separating the core prescription drugs and vaccines business from an enlarged over-the-counter products business that was merged with a Pfizer unit.
It is considering more divestments to fund the costs of the separation.
SOURCE:REUTERS