The GSK CH India business delivered total turnover of around INR 42 billion in the year ended March 2018, primarily through its Horlicks and Boost brands.
The merger of GSK CH India with HUL will be on a basis of an exchange ratio of 4.39 HUL shares for each GSK CH India Share, implying a total equity value of INR 317 bln for 100% of GSK CH India. Following the issue of new HUL shares, Unilever's holding in HUL will be diluted from 67.2% to 61.9%.
The merger includes the totality of operations within GSK CH India, including a consignment selling contract to distribute GSK CH India's Over-the-Counter and Oral Health products in India.
The transaction is expected to be completed in one year subject to regulatory and shareholder approvals.