GSK Plans To Divest Part Holding In Aspen

(RTTNews) - GlaxoSmithKline PLC (GSK, GSK.L) said Tuesday that it plans to sell up to about one-third of its 19% stake in Aspen Pharmacare Holdings Ltd. through a placing of ordinary shares in Aspen to institutional investors.

The offering is expected to comprise up to 28.2 million Aspen ordinary shares equivalent to c. 6% of Aspen's issued share capital, leaving GSK with a stake of c.13% if all the Aspen ordinary shares available in the offering are sold.

The offer price will be determined by means of an accelerated bookbuild process which is to start immediately.

Proceeds of the divestment will be used by GSK for general corporate purposes.

GSK will retain a seat on Aspen's board and plans to remain a significant shareholder of Aspen. GSK has undertaken not to dispose of any further shares in Aspen for a period of six months following completion, subject to certain limited exceptions. GSK acquired an equity stake in Aspen in 2009, when the two companies entered into two commercial collaborations in sub-Saharan Africa. Since then Aspen has also bought a number of non-core over-the-counter and prescription brands from GSK.

Most recently GSK accepted Aspen's offer to buy its thrombosis products Arixtra and Fraxiparine and their associated manufacturing site in France for £0.7 billion in cash, of which £0.1 billion relates to inventory. That deal was approved by Aspen's shareholders on November 8 and is expected to close at the end of the year.