On Wednesday, Hindustan Unilever Limited (HUL) announced that it has successfully completed the merger of GlaxoSmithKline Consumer Healthcare Limited with HUL after having secured necessary approvals. The FMCG's board has also approved the acquisition of Horlicks Brand for India from GSK for Euro 375.6 million (Rs 3,045 crore).
"This will help enable HUL utilize cash on its balance sheet and create value for shareholders," the company's statement said. It also said that brands like Boost, Maltova and Viva, which come under the ownership of GSKCH, will go to HUL's brand by virtue of merger.
Post the merger, GSK Plc (including Group Companies) will own 5.7 percent of the merger entity and Unilever holding will be lowered to 61.9 percent from 67.2 percent.
Under a consignment selling agreement, HUL will distribute GSK's over-the-counter and health products for 5 years (mutually renewable agreement).
Further, HUL's board has approved 17 April 2020 as the record date for determining the shareholders that will be entitled to be alloted shares of GSKCH. As per the amalgamation scheme, 4.39 equity shares of face value of Re 1 will be credited to the eligible shareholders for every 1 share of face value Rs 10 held in GSKCH India.