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

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

Shares in GlaxoSmithKline (LON:GSK) 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 consumer health joint-venture with its partner, while buying its vaccines business. At the same time Novartis is acquiring Glaxo’s cancer drugs portfolio.

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

At the moment, the British firm expects to return the cash via the issue of new B shares in the business that 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.

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