Horlicks has been in the news for some time now, with top notch companies of the world eyeing to bring it under their umbrella.
UK pharmaceutical giant GlaxoSmithKline Plc has requested bids by mid-September for its $4.3 billion Indian consumer-health unit, which owns the popular malted milk brand Horlicks.
Glaxo has sent out an information memorandum with preliminary details about the business to possible suitors, according to sources, as the information is private. As per market reports, the sale has attracted interest from potential bidders including Nestle SA, PepsiCo Inc. and Reckitt Benckiser Group Plc.
In March, the UK drugmaker had announced its aim to review Horlicks as a brand and to assess its 72.5 percent holding in India-listed GlaxoSmithKline Consumer Healthcare Ltd. Proceeds from a potential sale could be used to finance Glaxo’s $13 billion buyout of Novartis AG’s stake in their consumer-health joint venture.
This also includes its plans to review the 82 percent stake in the Dhaka-listed GlaxoSmithKline Bangladesh Ltd., as well as marketing rights in other emerging markets such as Malaysia. However, sources also verified that this assessment does not mean the company will certainly sell out its stakes. It could also mean that they decide to continue the business.
Shares of GlaxoSmithKline Consumer Healthcare have advanced nearly 9 percent in India trading this year, giving the company a market value of Rs 29,900 crore ($4.3 billion).