Joint operations: GSK and Stiefel all set to merge on July 1

KARACHI:

GlaxoSmithKline (GSK) Pakistan has announced that the merger of its assets with Stiefel Laboratories Pakistan (Private) Limited will come into effect from July 1.

The move comes nearly two years after GSK completed the acquisition of Stiefel globally in July 2009. Operations of Stiefel Pakistan will now be transferred to GSK Pakistan.

The directors have decided to submit the scheme to the court for approval, according to a notice sent to the Karachi Stock Exchange on Monday. The date is subject to approval of the court.

The authorised share capital of Stiefel Pakistan stood cancelled as a result of the merger. Shareholders of Stiefel were issued 144.52 ordinary shares of GSK Pakistan worth Rs10 each for each share of Stiefel Pakistan.

The authorised share capital of GSK Pakistan is 500 million ordinary shares worth Rs10 each, amounting to Rs5 billion.

After the merger, Stiefel, a specialist dermatology business with sales of approximately $900 million, and GSK, with sales of $550 million in the prescription dermatology market, will have eight per cent of the market at the global level.

Published in The Express Tribune, June 14^th, 2011.