| The board of directors of FMCG firm GlaxoSmithKline Consumer Healthcare Ltd. (GSKCH) today approved the buyback of shares worth nearly Rs 123 crore representing 7.33 per cent of equity share capital of the company.
|
| |
| After the proposed buyback, the UK-based GlaxoSmithKline Plc’s holding in the GSKCH would go up to 47.32 per cent. The company claimed that it was investing surplus funds to maximise shareholder value. The company would buy back shares at a price not exceeding Rs 370 per equity share.
|
| |
| This is the maximum amount that the company is authorised to deploy for this purpose, as per the provisions of the Companies Act, 1956 and prevailing Securities and Exchanges Board of India (SEBI) regulations.
|
| |
| The company will employ fixed price tender offer route for the buyback. The shares purchased under the buy back program will be cancelled, as required under SEBI’s guidelines, leading to a reduction in the company’s equity capital.
|
| |
| “GSKCH had evaluated various options on how to deploy its surplus funds to best maximize returns to shareholders,” said Gautam K Chakraborty, director, finance & IT, GlaxoSmithKline Consumer Healthcare.
|
| |
| “The proposed buy back represents prudent deployment of our surplus funds to improve shareholders’ value,” he added.
|
| |
| GSKCH’s equity capital is currently at Rs. 45.38 crore and its market capitalisation as on December 9, 2004 was Rs 1435 crore. The promoter’s shareholding currently stands at 39.99 per cent. Currently the public holds around 21 per cent of the company’s shares while LIC and GIC hold around 18 per cent and the FIIs 7.5 per cent.
|
| |
| The Rs 914-crore FMCG firm manufactures leading malt beverage brands like Horlicks, Boost and Viva, and over-the-counter healthcare products like Eno, Crocin and Iodex. |
| |
|
| |
Content Guide
