Unilever Overseas to buy GSK’s shares worth Tk2,000 crore

Unilever Overseas Holdings BV is going to buy shares of GlaxoSmithKline (GSK) Bangladesh Ltd worth Tk2,000 crore. It will buy a total of 98.75 lakh shares, which are in possession of Setfirst Ltd, a sister concern of GSK.

GSK got listed on the Dhaka Stock Exchange in 1976. At present, the price per share of the company in the stock exchange is Tk2,046.

On December 3, 2018, Unilever NV declared that it will buy GSK shares. 

However, Masud Khan, chairman of GSK Bangladesh, told the Business Standard that instead of Unilever NV, Unilever Overseas was going to buy the shares. Both the organisations are sister concerns of the consumer goods giant Unilever, he said.

Multinational companies do not buy shares directly, he added. 

"However, no decision has been taken on when the transaction will take place," Masud added.

GSK Bangladesh recently posted an all-time high earnings per share of Tk81.83 for the year ended in December 2019 against per share net loss of Tk52.75 in 2018.

Its net asset value per share has increased to Tk132 from Tk104.

At present, Horlicks contributes to around 93 percent of GSK Bangladesh's annual sales. The rest comes from mainly Sensodyne toothpaste, though there are some minor products like over the counter antacid brand Eno.

Masud said the pharmaceutical unit had been facing losses despite its strict commitment to quality and compliances.

The annual earnings this year made it clear that shutting the plant was a wise decision for the company and its shareholders, he said.