GlaxoSmithKline asset swap done; now for the £4bn handback

Shares in GlaxoSmithKline  tracked the market higher after it completed £13bn of asset swaps with Novartis that will unlock a £4bn windfall for investors.

The three-stage deal will see GSK form a consumerhealth joint-venture with its partner, while buying its vaccines business. At the same time Novartis is acquiring the Glaxo’s cancer drugs portfolio.

GSK will receive just over £5bn, which will allow it to make the payout.

At the moment, the British firm expects to return the cash via the issue of new B shares in the business which will then be bought back.

It has taken almost a year to get the transaction to completion.

GSK will announce first quarter results on May 6 at which point it will provide guidance on 2015 earnings, which so far been delayed.

Share in the company, down around 7.5% in the last year, rose 6.82p to 1,548.32p in early trade.

http://www.proactiveinvestors.co.uk/companies/news/77806/glaxosmithkline-asset-swap-done-now-for-the-4bn-handback–77806.html?

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