GSK to buy 16% stake in Aspen

12th May 2009 08:16

GlaxoSmithKline has agreed to buy a 16% shareholding in South African based pharmaceuticals company Aspen Pharmacare.The group said the deal is part of a wide ranging agreement which includes combining commercial activities in Sub-Saharan Africa and the divestment of several assets to Aspen. On completion, Aspen, which has a market cap of £1.4bn, will issue 68.5m new shares as non-cash consideration to GSK in exchange for the transfer of several assets. These shares will be equivalent to a 16% shareholding in the company.GSK will record a one-off non-cash, pre-tax profit on the expected closure of the transaction, representing the profit on disposal of the GSK assets to Aspen. The impact of this transaction to GSK's earnings per share is expected to be accretive in 2009 and slightly dilutive in 2010. "Extending our strategic relationship with Aspen supports GSK's strategy to accelerate sales growth in emerging markets," said Abbas Hussain, President Emerging Markets."The combination of our commercial activities in Sub-Saharan Africa is highly complementary and will mean that together we can provide more medicines of value to more patients in these countries. At the same time, GSK will also benefit from investing in one of Africa's leading healthcare companies with a formidable track record of delivery."