Hindustan Unilever share slips 5% as GSK sells stake via block deal

Daniel Fowler
May 11, 2020

In December 2018, Hindustan Unilever approved a scheme of amalgamation between the company and GlaxoSmithKline Consumer Healthcare Ltd (GSK CH India).

Hindustan Unilever also declined to comment.

Mumbai: Global healthcare major GlaxoSmithKline (GSK) on Thursday said it has sold its 5.7% stake in FMCG major Hindustan Unilever (HUL) for almost Rs 25,500 crore.

On 1 April 2020, GSK had announced the completion of its divestment of its popular healthcare drink brand Horlicks and other consumer healthcare nutrition products in India to Unilever.

"Its sales during the quarter under review slipped 9.61 percent to 9,055 crore, as against Rs 10,018 crore in the corresponding period a year ago, Hindustan Unilever Ltd (HUL) said in a regulatory filing".

In December 2018, Unilever said it would acquire health food drink brands GSK in India and Bangladesh and other markets for Euro 3.3 billion in cash and shares in Hindustan Unilever.

Potential investors were earlier told the shares would be sold in a range of 1,850 to 1,950 rupees, which was a 3%-8%discount to Wednesday's closing price of 2,010.20 rupees.

Elon Musk explains his baby's name on Joe Rogan's podcast
As TMZ have pointed out though, X Æ A-12 will be a hard name for Grimes and Musk to register in their home state of California. Grimes, however, seems to disagree about it being the right pronunciation of her son's name.

A total of 13.4 crore equity shares would be reportedly sold in bulk deals in a price band of Rs 1,850 to Rs 1,950 today, 7 May 2020.

The company sold 5.69 percent stake in HUL, which they got via an amalgamation deal in April, for about ₹25,400 crore. This is the biggest block deal ever made in India.

GSK previously acquired a almost 6 percent stake in the company as part of an earlier transaction completed this month.

It is eyeing more divestments to fund the costs of the separation.

Hindu Business Line reported that Societe General was one of the buyers and Morgan Stanley, HSBC, JPMorgan were the advisors to the deal. The company declined to comment on the stake sale.

Having sold travel vaccines to Bavarian Nordic for up to 955 million euros in October a year ago, the British group is looking into shedding more assets, starting with a review of its prescription dermatology business with about 200-300 million pounds in annual sales.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER