Pfizer and GSK to spin off Haleon in largest London listing for a decade

Pfizer will sell down its stake in Haleon, its consumer health joint venture with GlaxoSmithKline, after a London listing planned for July 18.

The US drugmaker has committed to selling its shares in a “disciplined manner” and has formed an “orderly marketing” agreement with GSK to ensure the two sellers do not destabilise stock in the new independent company.

GSK announced on Wednesday that it had submitted the prospectus for Haleon to the UK’s Financial Conduct Authority for approval and that it expected the shares to be admitted to the premium listing segment of the London Stock Exchange on July 18.

The spin off of the consumer health company — which owns brands including Sensodyne and Panadol — will be the largest London listing for a decade.

GSK turned down a £50bn bid from Unilever for the unit at the end of last year, arguing it undervalued the company. Haleon expects to increase sales by 4 to 6 per cent in the medium term, from almost £10bn a year.

The UK drugmaker owns a 68 per cent stake in the business, while Pfizer has a 32 per cent stake. Before the demerger, GSK is planning to take a dividend of more than £7bn.

After the spin-off, GSK investors will own at least 54.5 per cent of the company, receiving a share in Haleon for each GSK share they own. Funding mechanisms designed to fill the hole in GSK’s pension pot will account for another 7.5 per cent. GSK itself will own up to 6 per cent, which it will also sell down over time to fund investment in its drug and vaccine pipeline.

The company also announced a consolidation of shares in the remaining pharmaceutical business to ensure comparability before and after the spin-off.