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Johannesburg - GlaxoSmithKline, the UK’s biggest drug maker, will dispose of its remaining stake in Aspen Pharmacare Holdings less than a month after selling the South African company a portfolio of anaesthetic medicines.
Glaxo is offering 28.2 million shares, equal to 6.2% of Aspen’s ordinary share capital, to institutional investors, according to a statement issued on Wednesday.
The offer price for the sale will be determined through an accelerated book building process which will start immediately, Glaxo said. At Wednesday’s closing price on the JSE of R316.87, the stake is valued at R8.94bn ($651m).
During the seven years that Glaxo has been an Aspen shareholder, the stock has risen six-fold, Glaxo said. Aspen has declined 18% since Glaxo sold 28.2 million shares last year for $842m. The shares gained 1.2% on Wednesday.
Glaxo has entered into a placing agreement with Citigroup Global Markets and UBS, who will be joint book runners in the offering. Glaxo will use proceeds from the transaction “for general corporate purposes", it said in the statement. The net profit from the disposal will not be included in Glaxo’s core operating profit and core earnings per share in 2016.
Glaxo sold Durban-based Aspen the anaesthetics portfolio this month for as much as $364m.
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