(Alliance News) - GSK PLC on Wednesday said it has submitted to the UK Financial Conduct Authority its plan for the demerger of its consumer healthcare arm and its listing in London and New York as Haleon.
The separation will take the form of a demerger of at least 80% of GSK's current 68% share of the consumer business to GSK shareholders. The remaining 32% of Consumer Healthcare currently is held by US peer Pfizer Inc.
Following the float, GSK shareholders will own 54.5% of Haleon, while GSK's UK pension schemes will have 7.5%. GSK itself will retain up to 6%, but GSK said Pfizer intends to sell off its 32% stake in Haleon "in a disciplined manner, with the objective of maximising value for Pfizer shareholders".
Haleon will be listed as ordinary shares in London and as American depositary shares on the New York Stock Exchange.
Haleon will provide consumer healthcare products in five categories: Oral Health, Pain Relief, VMS, Respiratory Health, Digestive Health and Other. Oral Health will be its largest component, having contributed 29% of revenue in 2021.
GSK will be a pure biopharmaceutical firm, focused on vaccines and specialty medicines.
On Tuesday, GSK said it has agreed to pay USD2.1 billion upfront, with potentially a further USD1.2 billion coming, to acquire Boston, Massachusetts-based Affinivax. Affinivax is a clinical-stage biopharmaceutical company focused on developing a novel class of pneumococcal vaccines.
GSK on Wednesday said it will carry out a share consolidation following the demerger in order to keep its share price and earnings per share comparable to earlier periods.
The company called a general meeting for July 6 at the to approve the plan. The meeting will be held at the Sofitel London Heathrow, Terminal 5 hotel.
"The proposed demerger is the most significant corporate change for GSK in the last 20 years, creating two new leading companies, each with clear targets for growth and the ability to positively impact the health and lives of billions of people," GSK said.
GSK shares were down 0.4% at 1,725.20 pence midday Wednesday in London. Pfizer shares were up 0.1% at USD53.10 in the New York pre-market.
By Tom Waite; thomaslwaite@alliancenews.com
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Glaxosmithkline (GSK)