March 27, 2018 / 5:19 AM / 8 months ago

BRIEF-GSK To Review Of Horlicks, Consumer Nutrition Products To Fund Novartis Deal

March 27 (Reuters) - Glaxosmithkline Plc:

* GLAXOSMITHKLINE - TRANSACTION WITH NOVARTIS EXPECTED TO BE ACCRETIVE TO ADJUSTED EARNINGS IN 2018 AND THEREAFTER, AND TO STRENGTHEN CASH FLOW GENERATION

* GSK ALSO TO INITIATE STRATEGIC REVIEW OF HORLICKS AND OTHER CONSUMER NUTRITION PRODUCTS TO SUPPORT TRANSACTION FUNDING.

* ‍REVIEW WILL INCLUDE AN ASSESSMENT OF GROUP’S SHAREHOLDING IN INDIAN SUBSIDIARY, GLAXOSMITHKLINE CONSUMER HEALTHCARE LTD​

* STRATEGIC REVIEW WILL INCLUDE AN ASSESSMENT OF GSK’S 72.5% SHAREHOLDING IN COMPANY

* ‍EXPECTS OUTCOME OF STRATEGIC REVIEW TO BE CONCLUDED AROUND END OF 2018​

* GLAXOSMITHKLINE - CONSUMER HEALTHCARE BUSINESS TO CONTINUE TO INVEST IN GROWTH OPPORTUNITIES FOR OTC, ORAL HEALTH BRANDS, SUCH AS SENSODYNE AND ENO

* GLAXOSMITHKLINE - ACTIVELY INVESTING IN PHARMACEUTICAL, VACCINES BUSINESSES, INCLUDING BUILDING NEW MANUFACTURING CAPACITY IN VEMGAL, KARNATAKA, NASHIK

* GLAXOSMITHKLINE - BUYOUT TO BE STRUCTURED AS CANCELLATION OF NOVARTIS’ SHARES IN JV IN CONSIDERATION OF JOINT VENTURE PAYING BUYOUT PRICE TO NOVARTIS

* GSK HAS ENTERED INTO A COMMITTED FACILITIES AGREEMENT TO SUPPORT FUNDING OF BUYOUT

* AGREED TO PAY BREAK FEE OF $200 MILLION IN NOVARTIS DEAL

* JOINT VENTURE WILL CONTINUE TO PAY DIVIDENDS TO GSK AND NOVARTIS IN ACCORDANCE WITH ITS ESTABLISHED PRACTICE UNTIL COMPLETION Further company coverage:

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