GlaxoSmithKline Pharmaceuticals to divest Fine Chemical Business

GlaxoSmithKline Pharmaceuticals Ltd has announced that the Board of Directors of the Company at its meeting held on July 26, 2007, inter alia, has approved the divestment of the Company's Fine Chemical Business ("QFC Undertaking") as a going concern to Thermo Electron LLS India Pvt Ltd, a subsidiary of Thermo Fisher Scientific Inc., a leading American Company, for a total consideration of Rs 240 crores, subject to receipt of necessary approvals. The proposed divestment of the QFC Undertaking will transfer all rights and obligations of the Company in the QFC Undertaking.

The Company will now proceed seeking the approval of its shareholders through a postal ballot. Subject to receipt of the Shareholders consent and other requisite approvals, the transaction is expected to be completed by end September 2007.

The stock was trading at Rs.1224, down by Rs.30.25 or 2.41%. The stock hit an intraday high of Rs.1277.85 and low of Rs.1220. The total traded quantity was 19852 compared to 2 week average of 17479.

Source : Equity Bulls

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