GSK Completes Spin Off Of Its Consumer Healthcare Business

GSK Completes Spin Off Of Its Consumer Healthcare Business
  • GSK plc GSK has completed the demerger of the Consumer Healthcare business to form the Haleon Group. 
  • Reuters reported that shares in Haleon started trading at 330 pence on Monday morning, giving the business a market valuation of around £30.5 billion ($36.4 billion).
  • The company's debut price was in line with market expectations, according to two bankers involved in the deal. However, Haleon's current valuation is lower than expected.
  • Also Read: GSK Spurns $68.4B Bid From Unilever For Its Consumer Healthcare Business, Opts to Spin-off The Unit.
  • It is expected that American Depositary Shares representing shares of Haleon plc HLN will commence on 22 July.
  • Each Haleon ADS represents two Haleon ordinary shares.
  • Share consolidation: With the split complete, all GSK shareholders receive one Haleon share for each GSK share they own.
  • Pfizer Inc PFE will retain its 32% stake in Haleon, which it intends to sell off over time
  • GSK will hold up to 13.5% in Haleon, while GSK shareholders will own the remaining 54.5%.
  • The new company, Haleon, has become the world's biggest standalone consumer health business, offering brands such as Sensodyne toothpaste and Advil painkillers.
  • Price Action: GSK shares closed at $41.26 on Friday.

Posted In: BriefsBiotechLarge CapM&ANewsHealth CareGeneral