GSK Pte, Horlicks to sell 5.7% in HUL for $3.3 bn

HUL shares decline 1.57%

A man arrives at the Hindustan Unilever Limited (HUL) headquarters in Mumbai May 14, 2013. Global companies betting on India's potential as a consumer market are looking beyond the worst patch in a decade for Asia's third-largest economy and investing billions of dollars in the country. In the biggest recent deal, Unilever is spending up to $5.4 billion to lift its stake in its Indian subsidiary, Hindustan Unilever, the country's largest consumer goods maker. Picture taken May 14, 2013. REUTERS/Danish Siddiqui (INDIA - Tags: BUSINESS)

GlaxoSmithKline Pte and Horlicks will sell 5.69% stake in Hindustan Unilever Limited (HUL) in a deal valued at ₹24,750 crore or nearly $3.3 billion.

A total of 13.4 crore equity shares would be sold in bulk deals in a price band of ₹1,850 to ₹1,950 on Thursday. The base price is nearly 8% lower than Wednesday’s closing price of ₹2,009.85.

Shares of HUL, which is the country’s largest pure play fast moving consumer goods (FMCG) company, fell 1.57% on Wednesday.

In December 2018, HUL approved the merger of GlaxoSmithKline Consumer Healthcare India with the company, in a deal worth ₹31,700 crore to acquire Horlicks and Boost, among other health food drinks.

The all-equity merger transaction saw shareholders of GSK CH India getting 4.39 shares of HUL for every one share of GSK CH India. That, in turn, led to GSK Plc. holding 5.7% in HUL.

While deal was announced in December 2018, all the requisite approvals were obtained only last month.

Meanwhile, the share sale on Thursday will be managed by JP Morgan India, HSBC Securities (India) and Morgan Stanley India.