TLDR:
- Pfizer sold 640 million Haleon shares, raising £2.4 billion ($3.2 billion)
- The sale reduces Pfizer’s stake in Haleon from 22.6% to 15%
- Shares were priced at £3.80, a 3.3% discount to Monday’s closing price
- Haleon agreed to buy back £230 million worth of its shares from Pfizer
- This sale follows Pfizer’s and GSK’s previous stake reductions in Haleon
Pharmaceutical giant Pfizer has further reduced its ownership in consumer health company Haleon, raising approximately $3.2 billion through a significant share sale.
The transaction, which took place on October 1, 2024, marks another step in Pfizer’s gradual divestment from the maker of popular brands such as Sensodyne toothpaste and Panadol painkillers.
Pfizer initially planned to sell 540 million shares but increased the offering to 640 million due to strong investor demand.
The shares were priced at £3.80 each, representing a 3.3% discount to Haleon’s closing price on the previous trading day. This sale has decreased Pfizer’s stake in Haleon from 22.6% to 15%, though the U.S. drugmaker remains the largest shareholder in the British consumer healthcare group.
Haleon agreed to repurchase approximately £230 million ($307.4 million) worth of its shares from Pfizer at the same price set in the offering. This buyback further solidifies the restructuring of ownership between the two companies.
The sale is part of Pfizer’s stated strategy to reduce its Haleon ownership in a “slow and methodical” manner. It follows a similar move in March 2024, when Pfizer sold about $3.5 billion worth of Haleon shares. GSK, which originally co-owned the consumer health business with Pfizer, completed its separation from Haleon in May by selling its remaining stake for nearly £4 billion.
Haleon, formed in 2019 through the merger of GSK and Pfizer’s consumer healthcare businesses, was spun off from GSK in 2022. The company has shown strong performance, forecasting high single-digit growth in organic operating profit for 2024, driven by robust demand for its oral care products and vitamins.
The market reacted to the news with a slight dip in Haleon’s share price, which fell 1.2% to 388 pence in morning trading following the announcement. However, this minor fluctuation is not uncommon for large share sales of this nature.
Financial institutions BofA Securities and Goldman Sachs International served as joint global coordinators and joint bookrunners for the transaction, ensuring its smooth execution in the market.
This share sale contributes to the broader trend of equity market activity in Europe. So far in 2024, sales of new and existing shares in European listed companies have reached over $50 billion, marking a 2.3% increase compared to the same period in 2023.
For Pfizer, this transaction aligns with its ongoing strategy to optimize its portfolio and focus on its core pharmaceutical business. The proceeds from the sale could potentially be reinvested in research and development or used to strengthen the company’s balance sheet.
As for Haleon, the reduced stake of its former parent companies may provide greater autonomy in its operations and strategy going forward.
The company’s recent positive growth forecast suggests it is well-positioned to capitalize on the global demand for consumer health products.
