Glaxo seeks bids for $4 billion India consumer unit that makes Horlicks, Boost - Hindustan Times
close_game
close_game

Glaxo seeks bids for $4 billion India consumer unit that makes Horlicks, Boost

Bloomberg | ByGeorge Smith Alexander, P R Sanjai and Ruth David
Aug 22, 2018 10:49 AM IST

The UK drugmaker, GSK, announced in March that it aims to complete a strategic review of Horlicks and other nutritional products by the end of this year

UK pharmaceutical giant GlaxoSmithKline Plc has requested bids by mid-September for its $4.3 billion Indian consumer-health unit, which owns the popular malted milk brand Horlicks, people with knowledge of the matter said.

Proceeds from a potential sale could be used to finance Glaxo’s $13 billion buyout of Novartis AG’s stake in their consumer-health joint venture.(HT Photo)
Proceeds from a potential sale could be used to finance Glaxo’s $13 billion buyout of Novartis AG’s stake in their consumer-health joint venture.(HT Photo)

Glaxo has sent out an information memorandum with preliminary details about the business to possible suitors, according to the people, who asked not to be identified because the information is private. The sale has attracted interest from potential bidders including Nestle SA, PepsiCo Inc. and Reckitt Benckiser Group Plc, they said.

Hindustan Times - your fastest source for breaking news! Read now.

The UK drugmaker announced in March that it aims to complete a strategic review of Horlicks and other nutritional products by the end of this year. The company is assessing its 72.5 percent holding in India-listed GlaxoSmithKline Consumer Healthcare Ltd. as part of that process. Proceeds from a potential sale could be used to finance Glaxo’s $13 billion buyout of Novartis AG’s stake in their consumer-health joint venture.

Representatives for Glaxo and Nestle declined to comment. Spokesmen for Reckitt and Pepsi had no immediate comment.

Glaxo’s review of assets includes its 82 percent stake in the Dhaka-listed GlaxoSmithKline Bangladesh Ltd., as well as marketing rights to some consumer-health brands in other emerging economies including Malaysia, the people said. There’s no certainty the deliberations will lead to a transaction, and the parent company may yet decide to keep the businesses, they said.

Shares of GlaxoSmithKline Consumer Healthcare have advanced nearly 9 percent in India trading this year, giving the company a market value of Rs 29,900 crore($4.3 billion).

The Indian division’s brands include Boost, a malt-based drink that’s been endorsed by cricket legend Sachin Tendulkar, as well as Viva, a beverage that contains wheat and barley, and chocolate caramel drink Maltova, its website shows.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On