GSK sells entire shareholding

RNS Number : 5121A

GlaxoSmithKline PLC

01 February 2011

 



1^st February 2011

GSK Announces the Sale of its Entire Shareholding in Quest Diagnostics

GlaxoSmithKline plc ("GSK") announces that it has sold its entire holding of 30,755,151 shares of common stock in Quest Diagnostics Inc. ("Quest").  The sale comprised a secondary public offering by GSK (the "Offering") and an accompanying repurchase of shares by Quest (the "Repurchase").  GSK originally acquired the shareholding as partial consideration for the sale of its clinical laboratories business in 1999 and has since gradually reduced its stake in stages.

The Offering and Repurchase are together expected to generate gross proceeds to GSK of approximately $1.7 billion.  Net of tax, GSK expects to receive cash proceeds of approximately $1.1 billion.

Commenting on the transaction, Julian Heslop, CFO of GSK said, "Whilst we have been pleased with our investment in Quest Diagnostics, we have been considering the sale of our remaining position in the company for some time. We have decided that now is a good time to take advantage of favourable market conditions, thereby releasing funds from one of our non-core assets.  This divestment demonstrates our focus on generating attractive returns for our shareholders and our ability to monetize significant gains when appropriate."

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC agreed to purchase from GSK the shares sold in the Offering. 

V A Whyte

Company Secretary

01 February 2011

GlaxoSmithKline - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer.  For further information please visit www.gsk.com

GlaxoSmithKline Enquiries:
UK Media enquiries:	David Mawdsley	[phone]
	Claire Brough	[phone]
	Stephen Rea	[phone]
	Alexandra Harrison	[phone]
US Media enquiries:	Nancy Pekarek	[phone]
	Mary Anne Rhyne	[phone]
	Kevin Colgan	[phone]
	Jennifer Armstrong	[phone]
European Analyst/Investor enquiries:	Sally Ferguson	[phone]
	Gary Davies	[phone]
	Ziba Shamsi	[phone]
US Analyst/ Investor enquiries:	Tom Curry	[phone]
	Jen Hill Baxter	[phone]

 

Cautionary statement regarding forward-looking statements Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect GSK' s operations are described under 'Risk Factors' in the 'Business Review' in the company' s Annual Report on Form 20-F for 2009.

 

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