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LONDON (Alliance News) - GlaxoSmithKline PLC said Thursday it plans to sell around half of its 12.4% stake in African pharmaceutical firm Pharmacare Holdings Ltd through a placing of shares with institutional investors, and will use the funds for general corporate purposes.
It expects to offer around 28.2 million Aspen shares, or around a 6.2% stake, at a price to be determined through an accelerated bookbuild offering process. It will announce the price following the completion of the bookbuild process. Citigroup Global Markets Ltd and UBS Ltd will act as joint bookrunners on the offering.
GlaxoSmithKline has undertaken not to sell any of the remaining 6.2% stake in Aspen for 180 days following the completion of the placing, subject to some limited exceptions.
The company said the profit from the sale will not be included in its core operating profit or earnings per share in 2015, and it expects that it will no longer account for Aspen as an associate going forward.
"As we continue to reshape the group around our core franchises and drive the benefits from the Novartis transaction, optimizing our financial flexibility to invest behind these priorities is key. As a result we have decided now is the right time to realise further value from this successful relationship. We continue to believe in the strategy of Aspen and we remain committed to working together in the future," said Glaxo Chief Financial Officer Simon Dingemans in a statement.
Shares in GlaxoSmithKline are trading up 2.1% at 1,550.38 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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