GlaxoSmithKline To Sell Horlicks To Unilever - Quick Facts

(RTTNews) - GlaxoSmithKline plc (GSK) announced the sale of Horlicks and other consumer healthcare nutrition brands to Unilever plc (UN, ULVR.L) and the merger of GSK Consumer Healthcare Limited with Hindustan Unilever Limited for a total consideration valued at approximately £3.1 billion.

GlaxoSmithKline expects net proceeds are estimated to be approximately £2.4 billion on the same basis. In India, Horlicks and other nutrition products are sold by GSK India, in which GSK holds a 72.5% stake. The merger values GSK India at INR317 billion in total, or INR7,540 per share.

Following proposed transaction, GSK will own approximately 5.7% of HUL. Following completion of the transaction, currently expected by the end of 2019, GSK plans to sell down its holding in HUL.

GSK expects to use proceeds to support its strategic priorities and reduce debt. The company expects this to be neutral to earnings.