By Rupert Hargreaves
Consumer healthcare group Haleon said today that it would buy £315m of shares from Pfizer as part of the latter’s plan to reduce its stake.
Haleon was created through the merger of Glaxosmithkline and Pfizer consumer healthcare arms in 2019. The two parent companies remained major shareholders after the group’s spinoff and public offering, which took place two years later in July 2022.
However, Pfizer has committed to sell down its stake in a “slow and methodical” manner over time. It currently holds a 32 per cent stake in Haleon, but has said today it will reduce the position to around 24 per cent.
Haleon said in a statement that the offer price per share is expected to be announced on or around March 19, following the completion of a book-building process.
The sale of 630m shares would be worth about £2bn, according to Haleon’s Friday closing price. The shares will be offered to investors in both the US and London.
Haleon’s other major investor and former parent, GSK has also been selling down its stake. The last sale came in January when the pharma giant reduced its shareholding to 4.2 per cent from the 12.9 per cent it initially retained in the business.
Of the total number of shares offered for sale by Pfizer, Haleon has committed to buy £315m worth of shares as part of its plans to repurchase £500m in shares this year.
When Haleon’s management announced the buyback alongside the company’s 2023 results, it said the cash return reflected the group’s strong financial position, cash flow and outlook.
