HUL-GSK deal proves the power of equity, role of premium valuations

In addition to iconic Horlicks brand for Indian as well as international markets, HUL would also own other brands such as Boost, Viva and Maltova

The much-awaited announcement of sale of Horlicks brands finally turned out to be a complete buy-out of the GSK Consumer Healthcare in a share swap deal by Hindustan Unilever (HUL) pipping among others, Nestle, which was thought to the closest suitor till a few days ago.  The first big positive is that it’s a share swap deal where-in 4.39 equity shares of HUL would be swapped for every equity share of GSK Consumer. It seems a win-win for both the shareholders, but more so for HUL as a company.

In addition to iconic Horlicks brand for Indian as well as