After the finalisation of merger between GlaxoSmithKline (GSK) Consumer Healthcare and Hindustan Unilever, GSK Plc is preparing to start selling its stake in the FMCG giant.
ET Now, quoting agencies, said GSK PLc is likely to start the discussion of its stake in the next few days. It holds 5.7 per cent in the company, valued at $3.7 billion (Rs 28,000 crore).
If executed successfully, this could potentially be the largest block trade in India.
In December 2018, the Anglo-Dutch Unilever had announced that it was acquiring the health foods portfolio of GSK, including popular health drink brands Horlicks and Boost in India and over 20 other markets for £3.1 billion (about Rs 28,000 crore).
At the time of the deal announcement, GSK Consumer was valued at Rs 31,700 crore, and its shareholders were to receive 4.39 shares of HUL for each of their shares.
After the merger GSK Plc became the second-largest shareholder in the merged entity with 5.7 per cent stake while Unilever’s holding in HUL fell from 67.2 per cent to 61.9 per cent.
Thanks to the merger, HUL now owns brands such as Horlicks, Boost, and Maltova under its food and refreshments business falling under the nutrition category. As part of the merger, 3,500 employees also became part of the Indian arm of the Anglo Dutch giant Unilever.
Under the deal, HUL also got the rights to distribute GSK’s brands like Eno, Crocin, Sensodyne, etc in the country.
