Mumbai: UK-based GlaxoSmithKline (GSK) has received market regulator Sebi's approval for its over Rs 5,200 crore open offer for Indian subsidiary GlaxoSmithKline Consumer Healthcare.
The British pharma and consumer products maker had filed its draft offer document with Sebi (Securities and Exchange Board of India) on December 11 to acquire 31.8 percent stake in its Indian subsidiary for more than Rs 5,200 crore.
Sebi issued its final observations on the draft offer documents on January 4 as per the latest update by the market regulator. Sebi's observations are necessary for the companies to launch open offers.
The offer is scheduled to open from January 17, according to the announcement made by HSBC on behalf of GSK and is expected to close on January 30.
The UK parent had made an offer to acquire up to 13,389,410 shares, representing 31.8 percent of the total outstanding shares of the GlaxoSmithKline Consumer Healthcare.
The company would buy the shares at Rs 3,900 apiece taking the potential total value of the transaction to around Rs 5,220 crore.
Shares of the Indian company were trading at Rs 3,868.40 apiece in afternoon trade on the BSE.
In November, GlaxoSmithKline had offered to hike stake in its GlaxoSmithKline Consumer Healthcare to up to 75 percent.
As on quarter ended September 2012, the foreign promoter of GlaxoSmithKline Consumer Healthcare held 43.2 percent stake in the company while the public shareholding was at 56.84 percent.