Pfizer Trims Stake in Haleon with $3.05 Billion Share Sale
In a significant move, Pfizer has announced plans to sell shares worth $3.05 billion in Haleon, a British consumer healthcare company. This sale will reduce Pfizer’s stake in Haleon from 15% to approximately 7.3%. The transaction involves the sale of 700 million Haleon shares at 357 pence each, representing a discount of around 2.8% to the stock’s closing price on Tuesday.
Haleon’s Performance
Haleon, the maker of popular brands such as Sensodyne, Panadol, and Advil, has seen its shares rise by 17% in 2024. On Wednesday, its shares were up 0.7% at 369.7 pence in morning trade, in line with the broader FTSE 100. Despite this, Haleon has faced challenges, including missing third-quarter forecasts in October due to a stronger pound and lower sales of its painkiller Panadol in Australia and the Middle East.
Pfizer’s Strategy
Pfizer, which will remain Haleon’s largest shareholder after the sale, has been under pressure from hedge fund Starboard Value to hold its management accountable for underperformance. In 2023, Pfizer announced plans to reduce its ownership in Haleon in a “slow and methodical” manner within months. This sale is a significant step towards achieving that goal.
Background
Haleon was created in 2019 through the merger of GSK and Pfizer’s consumer healthcare businesses. It was spun off from the British drugmaker in 2022. Last October, Pfizer sold a $3.3 billion stake in Haleon, while GSK sold its entire stake in May.
Transaction Details
JPMorgan and Morgan Stanley are joint global coordinators and joint bookrunners for the share sale. The sale represents nearly 7.7% of the issued share capital of Haleon.
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