GSK to Sell Stake in Haleon, the World’s Largest Standalone Consumer Health Company

British pharmaceutical company GSK has announced its intention to sell a 2.9% stake, equivalent to approximately 270 million shares, in its consumer healthcare business, Haleon. This move will reduce GSK’s current 10.3% holding in Haleon, which was spun off and listed on the London Stock Exchange in July 2022.

GSK had previously sold 240 million shares in Haleon earlier this year, raising around £804 million ($1 billion) and reducing its stake from the initial 12.9% it retained in the business. Haleon, formed in 2019 through the merger of GSK and Pfizer’s consumer healthcare businesses, is now the largest standalone consumer health company globally.

BofA Securities and Citigroup have been appointed as joint global coordinators for the offering. As part of the agreement, these companies will not dispose of any shares in Haleon for a period of 60 days after the settlement of this offering, according to GSK. Pfizer, which currently holds a 32% stake in Haleon, announced its plans in May to gradually reduce its ownership in the company.

With this stake sale, GSK aims to optimize its investment portfolio and focus on its core pharmaceutical business. The transaction highlights GSK’s commitment to strategic divestments and streamlining its operations. Investors will closely watch the outcome of this offering, which will have an impact on the ownership structure of Haleon.

As the consumer healthcare industry continues to evolve, Haleon’s position as the leading player in the market is expected to drive growth and innovation. The company’s strong portfolio of brands, including Sensodyne, positions it well to capitalize on the increasing demand for self-care and wellness products.

Overall, GSK’s decision to sell a stake in Haleon demonstrates its commitment to creating value for shareholders and aligning its business for future success in the pharmaceutical industry.