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GSK Haleon stock split: When is the GlaxoSmithKline demerger happening?

By Daniela Ešnerová


Updated

A photo of a man holding two puzzle pieces.
GlaxoSmithKline will see its spin-off consumer healthcare business Haleon float next week. – Photo: ShutterStock

GlaxoSmithKline (GSK), one of the biggest UK-listed companies, has officially split in two. The process, which has given birth to a dual-listed consumer healthcare business, Haleon (HLN), has been in the works for months and was revealed to the public in February. 

Haleon (HLN) made its official debut on to the London Stock Exchange (LSE) on Monday and the groups official brokers, Citi (C), issued the consumer healthcare business with a 'buy' rating and 360p price target on Thursday.

“We see the company as the best vehicle to play the secular attractions of Consumer Health, facilitated by Haleon’s scale and its exposure to staples segments where it can more easily outperform,” Citi analysts wrote in a note. 

“Coupled with a strategic optionality offering a floor to valuation, we believe the stock offers the best of both worlds: Consumer Health ‘defendability’ and staples ability to outgrow,” Citi analysts continued. 

GlaxoSmithKline (GSK) share price chart

The move is set to be the biggest LSE listing in a decade. Thereafter, Haleon will also make the move to list on the bourse in New York:

“Application will also shortly be made to list American Depositary Shares (“ADSs”) representing Haleon ordinary shares on the New York Stock Exchange,” the company's website reads.

“It is expected that Haleon ADSs will commence “regular-way” trading on the NYSE at market open on 22 July 2022.”

“In addition, we expect that Haleon ADSs will begin trading on a “when-issued” basis on the NYSE from market open on 18 July 2022 up to and including 21 July 2022.”

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NVDA

123.44 Price
+4.600% 1D Chg, %
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Short position overnight fee 0.0041%
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Haleon origin

Haleon was borne out of GSK's GlaxoSmithKline’s consumer healthcare business by integrating the consumer health portfolio of Novartis AG (NVS) in 2015 and the Pfizer (PFE) portfolio in 2019. 

Pfizer (PFE) share price chart

Haleon's product portfolio is split among five categories: oral health, pain relief, VMS, respiratory health, digestive health and other. It also includes as toothpaste producer Sensodyne or makers painkillers Panadol and Advil.

Prior to the demerger, GSK owned 68% of the consumer healthcare business and Pfizer still holds 32%. Pfizer intends to sell its stake in Haleon after the float, while GSK plans to part with at least four fifth of its current holding in Haleon.

The US drugmaker said it was planning to exit the investment in “an disciplined manner,” the companies disclosed in a filing to the London Stock Exchange. Pfizer said it reached an “orderly marketing agreement” with its British counterpart so the two would not risk destabilising the stock price in the new independent company.

The parties involved agreed on a lock-in period, which prohibits both drugmakers from making any offers, sales, loans, pledges or other forms of disposals of Haleon shares and ADSs in respect of Haleon shares.

The lock-in period will end the day after either 10, November, 2022 or the release of Haleon's quarterly trading update for the period ending 30 June 2022 - whichever happens first.

It was recently announced that Haleon has selected Citigroup (C) and UBS Group (UBSG) as its brokers. UBS predicted that 2022 could be a standout year for Haleon and wrote in a note: “recovery from historically weak cough and cold seasons during the Covid pandemic becomes visible.”

Markets in this article

GSKl
GSK
15.300 USD
0.075 +0.490%
NOVN
Novartis - CHF
96.50 USD
2.25 +2.400%
PFE
Pfizer Inc (Extended Hours)
29.74 USD
-0.33 -1.100%
C
Citigroup
64.53 USD
-0.7 -1.070%
UBSG
UBS
27.39 USD
0.25 +0.920%

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