LONDON--GlaxoSmithKline PLC (GSK.LN) said Thursday it plans to
sell about half of its 12.4% stake in South Africa's Aspen
Pharmacare Holdings Ltd. (APN.JO) through a placing to
investors.
The sale would earn Glaxo about 11.5 billion rand ($1 billion)
based on Aspen's current market valuation.
Glaxo's Chief Executive Simon Dingemans said selling the shares
in Aspen will give it more financial flexibility following a recent
deal with Switzerland's Novartis AG (NVS) that involved selling
businesses to each other and setting up a joint venture.
Glaxo took a stake of about 19% in Aspen in 2009 as part of a
strategic relationship that included the two companies combining
some commercial activities in Sub-Saharan Africa.
In November 2013 Glaxo sold 6.2% of Aspen to investors for
ZAR7.1 billion, cutting its stake to the current 12.4%.
"We continue to believe in the strategy of Aspen and we remain
committed to working together in the future," he added.
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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