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* GSK cashes in after 2018 Horlicks divestment
* Sells 5.7% stake in Unilever's India business
* GSK had folded Horlicks unit into Hindustan Unilever
(Adds background on GSK, details on deal)
May 6 (Reuters) - GlaxoSmithKline is selling $3.45
billion worth of shares in Unilever's Indian business
on the open market, according to a deal marketing term
sheet seen by Reuters, cashing in late from the sale of the
Horlicks brand.
The 5.7% stake in Hindustan Unilever that is now on the
market, was accepted by GSK as payment for the sale of the
malted drink brand and other nutrition brands to Unilever
, agreed in late 2018.
The shares are being sold for 1,850 to 1,950 rupees, a 3%-8%
discount to Wednesday's close of 2,010.20 rupees, according to
the term sheet.
GSK, which declined to comment, struck a deal to fold its
Indian business - whose main product is Horlicks - into
Unilever's Indian unit Hindustan Unilever in exchange for shares
in the combined group.
Hindustan Unilever also declined to comment.
According to GSK's first-quarter report, it completed the
Horlicks deal on April 1, receiving the 5.7% equity stake in
Hindustan Unilever plus about 400 million pounds ($495
million)in cash.
The cash injection will help GSK in its goal of
reinvigorating its drug development pipeline, having made costly
bets on experimental cancer treatments and future cell and gene
therapies amid sluggish revenue growth.
Earlier this year, GSK launched a two-year programme to
split into two entities, separating the core prescription drugs
and vaccines business from an enlarged over-the-counter products
business that was merged with a Pfizer unit.
It is eyeing more divestments to fund the costs of the
separation.
Having sold travel vaccines to Bavarian Nordic for
up to 955 million euros in October last year, 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.
IFR earlier reported the Hindustan Unilever
transaction.
The transaction was organised by HSBC, Morgan
Stanley and JP Morgan. They declined to comment.
($1 = 0.8074 pounds)
(Reporting by Anshuman Daga in Singapore, Scott Murdoch and
Sumeet Chatterjee in Hong Kong; Writing by Ludwig Burger;
Editing by Elaine Hardcastle)
