Pfizer Trims Stake in Haleon, Raising Over £2 Billion
Quote from VATcal on 18/03/2024, 19:29Pfizer Trims Stake in Haleon, Raising Over £2 Billion
Pfizer, the pharmaceutical giant, is shedding a portion of its holdings in Haleon, a consumer healthcare company spun off from a joint venture between Pfizer and GlaxoSmithKline (GSK) in 2022. This move aims to generate over £2 billion (US$2.55 billion) for Pfizer.
The sale will involve roughly 630 million Haleon shares, including American depositary shares. This will reduce Pfizer's ownership in Haleon from 32% to approximately 24%. Haleon itself will also participate in the buyback, acquiring £315 million worth of shares as part of its previously announced £500 million stock repurchase program for 2024.
Pfizer's decision to offload part of its Haleon stake aligns with its strategic goals. The company has been vocal about using the proceeds to prioritize shareholder returns and potentially reduce debt incurred from its recent acquisition of Seagen, a biotechnology company, for $43 billion.
Pfizer has emphasized a "slow and methodical" approach to the sale to avoid negatively impacting Haleon's market value. This measured strategy follows the formation of Haleon in 2019, which combined Pfizer and GSK's consumer healthcare divisions, encompassing well-known brands like Advil, Aquafresh, Sensodyne, Panadol, Nicorette, and Beechams.
GSK has also recently undertaken a similar move, announcing the sale of a 2.5% stake in Haleon, amounting to £1 billion (US$1.25 billion). This suggests both pharmaceutical giants are aligning their portfolios with their core business areas.
Pfizer Trims Stake in Haleon, Raising Over £2 Billion
Pfizer, the pharmaceutical giant, is shedding a portion of its holdings in Haleon, a consumer healthcare company spun off from a joint venture between Pfizer and GlaxoSmithKline (GSK) in 2022. This move aims to generate over £2 billion (US$2.55 billion) for Pfizer.
The sale will involve roughly 630 million Haleon shares, including American depositary shares. This will reduce Pfizer's ownership in Haleon from 32% to approximately 24%. Haleon itself will also participate in the buyback, acquiring £315 million worth of shares as part of its previously announced £500 million stock repurchase program for 2024.
Pfizer's decision to offload part of its Haleon stake aligns with its strategic goals. The company has been vocal about using the proceeds to prioritize shareholder returns and potentially reduce debt incurred from its recent acquisition of Seagen, a biotechnology company, for $43 billion.
Pfizer has emphasized a "slow and methodical" approach to the sale to avoid negatively impacting Haleon's market value. This measured strategy follows the formation of Haleon in 2019, which combined Pfizer and GSK's consumer healthcare divisions, encompassing well-known brands like Advil, Aquafresh, Sensodyne, Panadol, Nicorette, and Beechams.
GSK has also recently undertaken a similar move, announcing the sale of a 2.5% stake in Haleon, amounting to £1 billion (US$1.25 billion). This suggests both pharmaceutical giants are aligning their portfolios with their core business areas.
