INSUBCONTINENT EXCLUSIVE:
follows a competitive auction in which Unilever saw off rival Nestle, as well as earlier interest from Coca-Cola
The transaction covers GSK's health food and drinks portfolio in India, Bangladesh and 20 other predominantly Asian markets
The main asset being sold is GSK's 72.5 per cent stake in GlaxoSmithKline Consumer Healthcare.Unilever said the 3.3 billion euros ($3.75
billion) it was paying would be paid in cash and shares in its subsidiary in India, Hindustan Unilever Limited (HUL).GSK said its net
proceeds from the deal, after tax and hedging costs, were expected to be around 2.4 billion pounds ($3.1 billion).Following the closure of
the deal, GSK will own approximately 5.7 per cent of HUL, which the British drug maker intends to sell down in tranches.The price being paid
for the GSK business, which includes the popular malt-based drinks Horlicks and Boost, is broadly in line with expectations
People familiar with the process had told Reuters it was likely to be for less than $4 billion.Horlicks comfortably dominates the
health-drinks market in India and Unilever is expected to try and give it a fresh lease of life, following a slowdown in sales growth in
recent years.GSK's decision to sell the business follows its $13 billion acquisition of Novartis's stake in the two groups' consumer health
joint venture earlier this year
GSK said at the time that selling Horlicks could support the funding of the Novartis buyout.Shares in HUL rose as much as 2.8 per cent to
