LONDON--GlaxoSmithKline PLC (GSK.LN) said Friday it has sold
28.2 million shares in South Africa's Aspen Pharmacare Holdings
Ltd. (APN.JO) for 372 South African rand a share, raising ZAR10.5
billion ($854 million).
Following the sale, Glaxo will hold 28.2 million ordinary shares
in Aspen, about 6.2% of the issued share capital, and has
undertaken not to sell any more shares in Aspen for 180 days.
Glaxo plans to use the money raised for general corporate
purposes. The net profit on the sale won't be included in core
operating profit and earnings per share in 2015, it added.
The pharmaceutical giant said Thursday it would sell about half
of its 12.4% stake in Aspen Pharmacare through a placement to
investors.
Glaxo Chief Executive Simon Dingemans said Thursday selling the
shares in Aspen would give it more financial flexibility following
a recent deal with Switzerland's Novartis AG (NVS) that involved
selling businesses to each other and setting up a joint
venture.
Glaxo took a stake of about 19% in Aspen in 2009 as part of a
strategic relationship that included the two companies combining
some commercial activities in Sub-Saharan Africa.
In November 2013 Glaxo sold 6.2% of Aspen to investors for
ZAR7.1 billion, cutting its stake to the current 12.4%.
"We continue to believe in the strategy of Aspen and we remain
committed to working together in the future," he added
Thursday.
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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