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Formal announcement
https://www.londonstockexchange.com/news-article/GSK/gsk-completes-sale-of-shares-in-haleon-plc/16155443
"GSK to sell £900m stake in British consumer goods giant Haleon
GSK is poised to sell its £900m stake in British consumer goods giant Haleon.
The pharmaceutical giant announced on Thursday plans to offload 270m shares in Haleon, equivalent to approximately 2.9pc of the company’s listed stock. "
From today's Telegraph, as I suggested a few months ago, 335 or thereabouts is an upper boundary for HLN as the committed sellers ie GSK and Pfizer are keen to offload their major interest here .
Holders should recognise this and consider their positions accordingly, remembering that GSK and Pfizer between them hold about half of Haleon stock.
The Chairman and CEO are very experienced.
Haleon SP to rise as certain non-essential portfolio brands are sold & Net debt is reduced.
'I think I would say don’t underestimate the transformation from being part of a bigger entity to suddenly being a stand-alone firm'
I think I would say don’t underestimate the transformation from being part of a bigger entity to suddenly being a stand-alone firm
Ex - Divi day today.
Future is bright for Haleon.
The chairman & CEO work well together.
Good summary
I do wonder if someone like Ulvr or similar might at some time come in and take a strategic holding ( perhaps 10%) just to be at the table in future discussions on brands for sale or if a bid came in.
Not really expecting anything soon ,with all the debt they have, but with the big share overhang someone might be able to get a good deal.
Failing that it’s all about paying down the debt, and waiting on developments on the share overhang.
I’m hoping when that finally happens we can maybe see some of the value the Ulvr bid saw be realised.
I don't hold here so if you choose to see my input as irrelevant , feel free. Nevertheless, as a former holder of both GSK and ULVR I watch this space and I thought I could add some helpful comment on prospects here. The latest figures are broadly positive, revenues up ~10% BUT most of that is price increases and there is less scope for further increases as inflation starts to level out ,margins were in fact down 22%and free cash was ~£370 million .
The problems with which Haleon was saddled at birth still loom large, a huge slew of debt which at the present level of income will be with the company for several years, and two major investors in GSK and Pfizer committed to selling their holdings which are about 50% of the equity . GSK's sale in May at 335p effectively puts a cap on the SP , it is a reasonable assumption that either GSK or Pfizer will unload if/when the SP hits that number again, and exceeding it is highly improbable for the foreseeable future. Additionally I learn that both companies are trying to pressure HLN to indemnify them against any costs arising out of the Zantac litigation . IMV that is an appalling abdication of responsibility by both boards and lowers my already poor opinion of Emma Walmsley.
It seems that HLN are trying to fund debt reduction by selling off some of their brands, yesterday's Times mentions Nicotinell and ChapStick. So in summary, I don't see HLN's SP moving up much and I see little prospect of significant divis for a significant time.
I don't do investment advice , so draw your own conclusions.
All today with factors affecting stock market.
Downgrading on USA by Fitch to AA+ & BOE Borrowing rate increase to 5.25% tomorrow.
Good buying oppo.
When Unilever and Reckitt are in the high teens.
And yet again another company punished for good results by sp dropping.
So just bought some more.
Yesterday analysts were expecting revenue at £5,687m and an adjusted EBITDA of £1,316m. Todays actual results show a revenue of £5,738m and EBITDA of £1,406m. As this is above market expectations, by about 1% and 7% respectively, I would expect this to result in an uprate of the SP.
Good to see on UK TV Channels its products - ensures public are aware of Haleon.
The SP has been heading north.
Https://www.marketbeat.com/instant-alerts/nyse-hln-sec-filing-2023-07-19/
USA sales for this product should increase, also UK & Middle East.
Hopefully Haleon SP should increase - maybe even 'Erictile' northwards.
Futura Medical plc (AIM: FUM) ("Futura" or the "Company"), a pharmaceutical company developing a portfolio of innovative products based on its proprietary, transdermal DermaSys® drug delivery technology, focused on sexual health, today announces that it has entered into a ground breaking licensing agreement with Haleon plc ("Haleon"), a world leading consumer healthcare Company for the rights to exclusively commercialise the Company's innovative topical, gel-based Erectile Dysfunction ("ED") treatment MED3000, in the USA.
Haleon planning 'hundreds of job cuts in the UK and worldwide'.
"We've announced internally a number of changes across our global business this week, as we continue to evolve Haleon into a more agile organisation,"Haleon spokesperson said in an email to Reuters.
Those laid off are expected to leave in September.
Price of $800 million mentioned, so that could be another slice of debt paid off.
Time will tell
Haleon is notifying interested businesses it is considering Nicotinell brand of nicotine gum, patches and lozenges to
be sold.
SP may go north.
My apologies.
I refer to Aquafresh toothpaste - it is market leader.
Sensodyne toothpaste is more premium brand / expensive compared to Aquafresh.
Both are Haleon products and well stocked in Supermarkets / Pharmacy's ,etc
Had these shares for a while thanks to a big investment in GSK. In our house we've stopped buying any of the top "brands" unless they are the cheapest. As budgets tighten with the calamity of rising mortgages and food inflation I expect many others will start to cut back. Yet Haleon has been quite resilient so far. I find it hard to think of this stock as a defensive play so I'm thinking of selling out, perhaps at 340p+. Am I missing something?
Inflation is striking Sensodyne toothpaste.
Not selling 125ml tubes - now 100ml sizes.
However, Colgate is now 75ml tubes but bigger packaging.
Surely, consumers can see through Colgate deceit.
And suddenly the huge stock overhang doesn’t seem quite as scary.
If they can do it once,it hopefully will be easy to repeat.
And it will be nice to have some big shareholders you want to be invested here.
And no sales from either for 60 days.( about 2nd week in July)
Just before half year results 2nd August
Further to "meoryou" post a bit more information on the sale to institutional investors.
Reuters "British drugmaker GSK (GSK.L) on Friday sold 240 million shares in its consumer healthcare business Haleon (HLN.L) at 335 pence per share, raising about 804 million pounds ($1 billion)... The sale price represents a 2.3% discount to Haleon's closing price of 342.85 pence on Thursday and lowers the stake of GSK, the second-largest shareholder, to 10.3%... GSK and Pfizer have agreed to not sell any further Haleon shares for 60 days."
In another article on Fierce Pharma websit "Just last week, Pfizer, which has a 32% stake in Haleon, told the Financial Times that it would begin a “slow and methodical” sale of its holdings.“We love the Haleon business but it's not strategic,” Pfizer’s chief financial officer Dave Denton . Pfizer’s Haleon stake is worth just over 10 billion pounds ($12.5 billion)."