GSK pays $1bn to lift Indian unit stake to 75%

GlaxoSmithKline said yesterday it had paid 64 billion rupees ($1.05 billion) to increase its stake in its Indian pharmaceuticals unit to 75 per cent, as it banks on rising demand for medicines in emerging markets.

Britain’s biggest drugmaker first announced plans to lift the holding in GlaxoSmithKline Pharmaceuticals from 50.7 per cent in December. It held an open offer to buy the extra shares at 3,100 rupees each from February 18th to March 5th.

David Redfern, GSK's chief strategy officer, said the decision to increase exposure to the Indian market was "a significant vote of confidence" in growth prospects for its business in India. GSK, which has had a presence in India for 90 years, is keen to secure a bigger share of India's growing $14 billion-a-year market – ( Reuters )