British-Dutch consumer goods company, Unilever, has reportedly announced its acquisition of more than 82 per cent stake in GlaxoSmithKline’s food and drinks division in Bangladesh. The company has reportedly acquired these shares from Setfirst via the block market and intends to further enhance its footprint in Asia’s fast-growing economies.

According to Unilever, Setfirst had earlier expressed its intention to sell its entire holding of 98.75 lakh shares to Unilever Overseas Holdings BV showing compliance with the stock market regulator. Sources state that GSK’s stock price was Tk 1,084 when the primary agreement was drafted in 2018.

Unilever has also expressed plans to buy GSK’s entire health food and drinks division in India as well as in 20 other Asian countries for about $3.74 billion, after having stood competition against Nestle and Coca-Cola.

For the record, GSK Bangladesh’s 9,875,144 shares have been traded on the block market for a total worth of Tk 2,020.75 crore at Tk 2,046.30 each. The block market is a stock exchange platform where a large number of securities are traded in a single transaction at a negotiated price.

Sources cite that the remaining 18 per cent of GSK Bangladesh’s shares have been held by general investors owning 2.12 per cent share, institutional investors owning 15.53 per cent, and foreign investors having a share of 0.37 per cent as of February 29, 2020, states the Dhaka Stock Exchange.

Of late, Unilever had also made an announcement disclosing the official merger of GSK Consumer Healthcare Limited with Hindustan Unilever Limited which is the largest fast-moving consumer goods business in India. Unilever envisioned to evolve its food and refreshment portfolio towards scaling growth segments through this merger.

For the uninitiated, GSK is a science-led global healthcare company with its Bangladesh division, GSK Bangladesh, beginning its journey in 2002. The company provides a wide range of products including innovative medicines, vaccines, and nutrition and oral healthcare products.

Source Credits:

https://www.thedailystar.net/business/news/unilever-buys-82pc-stake-gsks-health-food-division-bangladesh-1922009