GSK moves to sell $3.45 billion stake in Hindustan Unilever in open market
The shares are being sold for Rs 1,850 to Rs 1,950, a 3%-8% discount to Wednesday's close of Rs 2,010.20, according to the term sheet;
New Delhi: GlaxoSmithKline is selling $3.45 billion worth of shares in Unilever's business on the open market, according to a deal marketing term sheet seen by Reuters, cashing in late from the sale of the Horlicks brand.
The 5.7% stake in Hindustan Unilever that is now on the market, was accepted by GSK as payment for the sale of the malted drink brand and other nutrition brands to Unilever, agreed in late 2018.
The shares are being sold for Rs 1,850 to Rs 1,950, a 3%-8% discount to Wednesday's close of Rs 2,010.20, according to the term sheet.
GSK, which declined to comment, struck a deal to fold its Indian business - whose main product is Horlicks - into Unilever's Indian unit Hindustan Unilever in exchange for shares in the combined group.
Hindustan Unilever also declined to comment.
According to GSK's first-quarter report, it completed the Horlicks deal on April 1, receiving the 5.7% equity stake in Hindustan Unilever plus about 400 million pounds ($495 million)in cash.
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