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GlaxoSmithKline (GSK) has agreed to divest 28.2m ordinary shares in South African drugmaker Aspen Pharmacare, for around ZAR10.5bn ($856m).

The company has decided to sell shares at a price of ZAR372 per Aspen share.

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GSK will have 28.2 million ordinary shares in Aspen, after settlement of the sale, which represents about 6.2% of the issued share capital.

The gross proceeds from the deal are equivalent to £574m, as per the prevailing exchange rate on 12 March. GSK will use the proceeds from the transaction for general corporate purposes.

Subject to certain limited exceptions, GSK will not dispose of any further shares in South African drugmaker for a period of 180 days following completion.

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"As we continue to reshape the group around our core franchises and drive the benefits from the Novartis transaction, optimising our financial flexibility to invest behind these priorities is key."

GSK previously announced its intention to sell half of its 12.4% interest in Aspen through a placing of ordinary shares to institutional investors.

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GSK chief financial officer Simon Dingemans said: "GSK has a long and successful commercial partnership with Aspen and our investment in the company has grown in value significantly over time.

"As we continue to reshape the group around our core franchises and drive the benefits from the Novartis transaction, optimising our financial flexibility to invest behind these priorities is key.

"As a result we have decided now is the right time to realise further value from this successful relationship. We continue to believe in the strategy of Aspen and we remain committed to working together in the future."

GSK has signed placing agreement with Citigroup Global Markets and UBS, in a bid to serve as the joint book runners for the offering.

Image: GlaxoSmithKline headquarters in Brentford, London, England. Photo: courtesy of Maxwell Hamilton.