Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, September 28, 2018

Article Excerpt

GLAXOSMITHKLINE PLC (ADR), $40.17, symbol GSK on New York, is a U.K.-based global healthcare company that develops, makes and sells products in three main markets: pharmaceuticals, vaccines and consumer. It has about 98,000 employees. On July 20, 2018, rumours surfaced that Glaxo was considering spinning off its consumer health-care business, which includes well-known brands such as Sensodyne toothpaste, Otirvin nasal spray, Voltaren pain relief, Tums antacids, and Abreva skincare products. Glaxo now owns 100% of its consumer health-care business after Swiss-based Novartis AG, symbol NVS on New York, sold its 36.5% stake in the business back to Glaxo for $13 billion in March 2018. The consumer health-care business has an estimated value of around $33 billion, so it would be a big purchase for a potential buyer. However, the chance of a spinoff instead adds to Glaxo’s appeal. Meanwhile Glaxo is in the process of selling the Indian operations of its consumer health-care business. This is mainly comprised of its Horlicks nutrition unit. Horlicks…

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