GSK India announces buyback
By Our Corporate Bureau | 15 Mar 2005
According to S Kalyanasundaram, MD, GlaxoSmithKline Pharmaceuticals Limited, "The operating performance of the company has significantly improved since 2001. The enhanced performance, together with income from the sale of properties, has resulted in substantial cash generation and a favourable liquidity position as on date." Sundaram further added, "A Buyback of shares will enhance earnings and improve shareholder value."
Since GSK plc will not participate in the buyback, depending on the response to the offer, the percentage holding of the promoters in the company would increase beyond the current holding of 49.15 per cent. The company will now have to obtain shareholder consent for the proposed Buyback of shares by postal ballot.