GlaxoSmithKline (NYSE:GSK) to Lift Stake in Indian Unit by $941 Million Investment – GSK, PFE, ABT, NVS

The United Kingdom based GlaxoSmithKline plc (ADR) (NYSE:GSK) reported in a statement on Monday that the drug giant has offered to acquire a added stake of around 31.8% in its Indian business, GlaxoSmithKline Consumer Healthcare Ltd , at 3,900 rupees or $70.3 a share.

The bid is for acquiring around 13.4 million shares of GlaxoSmithKline Consumer Healthcare and will probable to be launched by January.

GlaxoSmithKline possesses 43.2% in the business and will spend almost INR52.2 billion or $941.4 million to boost its stake.

The bid price is at a 28.2% premium to the GlaxoSmithKline Consumer Healthcare security’s Friday ending price of INR3043.30 on the Bombay Stock Exchange.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Pfizer Inc. (NYSE:PFE) rose +0.74% to settle at $24.53, Abbott Laboratories (NYSE:ABT) moved up +1.80% to end at $64.47 while Novartis AG (ADR) (NYSE:NVS) jumped +2.04% to finish at $60.62 on Friday.

GlaxoSmithKline plc (ADR) (NYSE:GSK) last session’s volume of 1.05 million shares was lower than its average volume of 2.44 million shares. The stock after opening at $42.98 hit high price of $43.18 and then closed at $43.17 by scoring +1.43%.

GSK generated revenue of $42.44 billion in the previous twelve months and earned $7.90 billion. The Company showed a positive 19.50% in the net profit margin as well as in its operating margin which remained at 27.55%. Company’s annual sales growth for the past five years was 3.35%.

The GSK’s past twelve months’ price to sales ratio was 2.50 and price to cash ratio remained 18.39. As far as the returns are concerned, GSK’s return on equity was recorded as 72.49% and return on investment increased 19.51% while its return on asset stayed at 12.68%.

The stock showed weekly upbeat performance of 2.98% which was maintained for the month at -3.42%. Likewise the negative performance for the quarter was recorded as -4.58% and for the year was 6.70% while the YTD performance remained at -0.05%.

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