In its biggest step in the deals space yet, Hindustan Unilever Ltd on Monday said that it will merge with GSK's healthcare business in India. The transaction values the total business at Rs.31,700 crore. The merger includes the totality of operations within GSK Consumer Healthcare India Ltd, including a consignment selling contract to distribute GSK Consumer's over-the-counter and oral health products in India, the company said in a statement.
GSK Consumer Healthcare India is the market leader in the health food category, with iconic brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims. This portfolio has a long history in India with Horlicks having originally been introduced in the 1930s.
The merger of GSK Consumer with HUL will be on a basis of a share swap ratio of 4.39 HUL shares for each GSK Consumer share, implying a total equity value of ?31,700 crore for 100% of the latter. Following the issue of new HUL shares, Unilever's holding in HUL will be diluted from 67.2% to 61.9%, the company said.(Source : Mint).