 Mumbai:
The board of directors of GlaxoSmithKline Pharmaceuticals Limited, have
approved the buyback of the equity shares from existing shareholders through
the stock exchange route. The company will offer up to Rs800 per share within
the limit of Rs230.65 crore, the 25 per cent of the total paid-up equity
share capital and free reserves of the company.According
to S Kalyanasundaram, MD, GlaxoSmithKline Pharmaceuticals Limited, "The
operating performance of the company has significantly improved since 2001.
The enhanced performance, together with income from the sale of properties,
has resulted in substantial cash generation and a favourable liquidity position
as on date." Sundaram further added, "A Buyback of shares will
enhance earnings and improve shareholder value." Since
GSK plc will not participate in the buyback, depending on the response to
the offer, the percentage holding of the promoters in the company
would increase beyond the current holding of 49.15 per cent. The company
will now have to obtain shareholder consent for the proposed Buyback of
shares by postal ballot.
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