London, Thursday, 02 June 2022
GSK Plc, the UK drugmaker, plans to offer its consumer-health unit on the London Stock Exchange on July 18 in what is believed to be the largest IPO in the previous decade.
GSK shares climbed by less than 1%, while preparing to separate with Haleon, the manufacturer of Panadol medicines and Sensodyne toothpaste, in a move that the pharma and vaccines behemoth claims will boost both firms' prospects.
The trading launch date for Haleon was confirmed in a statement released on Wednesday. Pfizer Inc., which will own 32 percent of the company after the split, intends to withdraw "disciplinedly."
GSK has undertaken a pair of purchases in recent weeks as part of an effort to improve its array of prospective medications and vaccines, which has come under fire from activist investor Elliott Investment Management and lingering worries about its pipeline.
It agreed to buy Affinivax Inc. for up to $3.3 billion on Tuesday, bringing with it the possibility of next-generation vaccines.
Following the rejection of Unilever Plc's numerous bids for the consumer arm, GSK expects to collect cash proceeds of more than £7 billion ($8.8 billion) from its biggest shakeup in two decades. Nestle SA was also interested in Haleon at first, but eventually dropped out.
At least 80% of GSK's holdings will be split off to shareholders as part of the separation plan. GSK currently has a 68 percent controlling stake in the consumer division.
According to the announcement, GSK stockholders will own at least 54.5 percent of the stock after the split, with GSK owning up to 6%.
Scottish limited partnerships, which were established to offer a funding mechanism for GSK's UK pension plans, will hold 7.5 percent, which GSK claimed it will be able to monetize and keep any proceeds in excess of £1.08 billion.
Glaxo said earlier this year that its consumer company, Haleon, aspires for annual sales growth of 4% to 6% in the medium term, a target that excludes two new arrangements to transfer drugs from prescription-only to over-the-counter sales.
(Story by: The Decision Maker)
(Picture by: Wikipedia)