Business

GlaxoSmithKline to sell stake in Hindustan Unilever: Report

Updated : December 16, 2019 12:50 PM IST

GSK is hoping to cash out its nearly 6 percent stake in HUL after a pending merger approval comes through this month.

The development came about a year after GSK Consumer Healthcare agreed to merge with Hindustan Unilever.

GSK acquired an additional 15 percent stake in HUL through a buyback mechanism in 2013 for Rs 600 per share.

GlaxoSmithKline (GSK) is looking to sell its stake in Hindustan Unilever (HUL) in ‘tranches’ by early 2020, according to an Economic Times report.

The development came about a year after GSK Consumer Healthcare agreed to merge with Hindustan Unilever. GSK acquired an additional 15 percent stake in HUL through a buyback mechanism in 2013 for Rs 600 per share. HUL's share price rose significantly in the last five years.

“I can confirm that the divestment of Horlicks is progressing well and we are currently working towards completion in Q1, 2020, subject to receipt of regulatory approvals… following completion of the transaction, we intend to sell down our holding in HUL," Simon Steel, a spokesperson of GSK Plc was quoted as saying in the report

"Such sell-down will be in tranches and at such times as GSK considers appropriate. We can’t comment further on specifics at this time,” said Steel.

The company, the report said, was looking to cash out its nearly 6 percent stake in HUL after a pending merger approval comes through this month. According to the report, GSK’s stake will be worth $3.7 billion (about Rs 27000 crore), making it one of the largest block trades in India.