Following the completion of the transaction , GSK will no longer hold any HUL shares
GSK had received HUL's shares in return of the sale of its Indian consumer business, GlaxoSmithKline Consumer Healthcare
MUMBAI: GlaxoSmithKline Plc (GSK) on Thursday said it has sold its 5.7% stake in fast moving consumer goods (FMCG) major, Hindustan Unilever Ltd (HUL), for Rs25,480 crore, according to a stock exchange filing in London. The GSK share sale marks the largest secondary trade on Indian stock exchanges.
"GSK has, through its subsidiaries GlaxoSmithKline Pte Ltd and Horlicks Ltd, today agreed to the sale of 133,772,044 ordinary shares in HUL at a volume-weighted average price of approximately Rs. 1,905 per share, raising gross proceeds of approximately Rs. 254.8 billion," the company said.
Following the transaction , GSK will no longer hold any HUL shares, it added.
The names of the buyers could not be immediately ascertained.
On 29 April, Mint had reported that GSK will soon start selling its stake in HUL for an estimated value of ₹29,850 crore ($3.9 billion). In early April, GSK received HUL's shares in return of the sale of its Indian consumer business, GlaxoSmithKline Consumer Healthcare Ltd, to HUL. The two multinational giants had announced the all-share deal worth ₹31,700 crore ($3.8 billion) in December 2018.
"When GSK originally announced the divestment of Horlicks in December 2018, it expected gross proceeds from the overall transaction to be approximately £3.1 billion and net proceeds to be approximately £2.4 billion after hedging costs, taxes and other expenses had been settled," the company said.
"With the appreciation of HUL's share price since then, GSK now expects gross proceeds from the divestment to be £3.4 billion and net proceeds from the divestment to be £2.9 billion," GSK added.
This includes the proceeds received on closing of the HUL merger transaction on 1 April, 2020, and the estimated proceeds from the sale of its Bangladesh business, which is expected to close later this year.