GlaxoSmithKline plc (GSK), the U.K.-based consumer healthcare multi-national, along with its subsidiaries has announced an open offer to increase its stake in its consumer healthcare subsidiary in India, GlaxoSmithKline Consumer Healthcare (GSKCH), which is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

GSK’s open offer is to increase its stake in GSKCH from 43.16 per cent to 75 per cent and it is offering to buy back shares at Rs.3,900 per share. According to a company filing to the BSE, the offer is to acquire up to 13,389,410 shares, representing 31.84 per cent outstanding shares of the Indian company.

The potential value of the transaction at the offer price is about Rs.5,221 crore. The offer is being managed by HSBC Securities and Capital Markets (India) Private Limited.

Offer price

The offer price of Rs.3,900 per share is being made at a premium of around 28 per cent to the closing share price on November 23, 2012.

On Monday, the share price rose by Rs.608.6 or 20 per cent at the opening to scale a new high and closed at Rs.3,651.8.

GSKCH in India recorded revenues of Rs.857.7 crore for the nine-month period ended September 2012 with a net profit of Rs.128.55 crore. It employs around 3,200 people in India.