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GSK to Further Reduce Stake in Haleon With Sale of 240 Million Shares

EditorVenkatesh Jartarkar
Published 10/05/2023, 02:44 PM
Updated 10/05/2023, 02:44 PM
© Reuters.

British pharmaceutical giant, GlaxoSmithKline (NYSE:GSK), has announced plans to further decrease its stake in Haleon by selling approximately 240 million shares on the London Stock Exchange. The decision, revealed on Thursday, follows an earlier transaction that saw GSK reduce its initial 12.9% stake to 10.3%, earning the company around $1 billion.

Haleon, a leading global supplier of non-prescription drugs, vitamins, and oral care products, was born out of a merger between GSK and U.S. pharmaceutical titan Pfizer (NYSE:PFE)'s healthcare sectors in July 2022.

According to InvestingPro, Haleon has been profitable over the last twelve months, with impressive gross profit margins. The company has also been predicted by analysts to be profitable this year. These insights are part of the InvestingPro Tips, which provide valuable information on various companies. For more tips on Haleon, readers can visit InvestingPro.

The sale price will be determined through an accelerated bookbuild offering process. Based on a share price of 336.25 GBX, the sale could generate around £988.8 million ($1.20 billion USD). This move would further diminish GSK's stake in Haleon to about 7.4%.

InvestingPro data reveals that Haleon has a market cap of $37.67 billion USD and a P/E ratio of 24.51. The company's revenue for LTM 2023 Q2 is $14487.64 million USD, with a gross profit of $8970.96 million USD.

Pfizer currently holds a significant 32% stake in Haleon, underscoring the company's considerable influence within the consumer healthcare collaboration born from GSK and Pfizer's strategic partnership.

GSK, a prominent player in the pharmaceutical industry, according to InvestingPro Tips, has been focusing on high return on invested capital and maintaining dividend payments for 23 consecutive years. The company's current market cap is $72.89 billion USD, with a P/E ratio of 3.87. It has generated a revenue of $37252.84 million USD for LTM 2023 Q2, with a gross profit of $26611.89 million USD. For more tips on GSK, readers can visit InvestingPro.

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This series of transactions underscores GSK's ongoing strategy to streamline its portfolio and focus on its core pharmaceutical businesses. The news was reported by Christian Moess Laursen via Dow Jones Newswires.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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