From BusinessStandard.

GlaxoSmithKline said it plans to reduce its investment in South African drugmaker Aspen Pharmacare by a third, but will retain a board seat and 13 percent of the company, Reuters reports in BusinessStandard.

The sale of up to 28.2 million shares could realise some 7.54 billion rand (about $740 million) based on current market prices.

Britain’s biggest drugmaker intends to offload around 6 percent of Aspen’s issued share capital through a placing with institutional investors, leaving it with a stake of approximately 13 percent.

It first bought into in Aspen in 2009. Africa‘s biggest maker of generic drugs has since expanded substantially through a string of deals.

“GSK has a long and successful partnership with Aspen – and our investment in the company has grown in value significantly over time,” GSK’s head of strategy David Redfern said in a statement. “Having assessed this investment we have now decided to realize some of this value without altering the basis of the partnership. We remain committed to working closely with Aspen as shown by our remaining stake in the company and our board seat.”

GSK, which said it would use the money for general corporate purposes, has undertaken not to dispose of any further shares in Aspen for a period of six months following the sale.

Citigroup Global Markets and UBS (a Swiss global financial services company headquartered in Switzerland) will act as joint bookrunners for the share placing. GSK said the net profit on the disposal would not be included in core operating profit and core earnings per share in 2013.

Story by Ben Hirschler. Read more at BusinessStandard.