GSK India announces buyback
By Our Corporate Bureau | 15 Mar 2005
Mumbai:
The board of directors of GlaxoSmithKline Pharmaceuticals Limited, have
approved the buyback of the equity shares from existing shareholders through
the stock exchange route. The company will offer up to Rs800 per share within
the limit of Rs230.65 crore, the 25 per cent of the total paid-up equity
share capital and free reserves of the company.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.
