Pfizer to cut stake in Sensodyne toothpaste-maker Haleon to 24%

CONSUMER healthcare firm Haleon said on Monday (Mar 18) that US drugmaker Pfizer, its top shareholder, will sell down its stake in the company to about 24 per cent.

Pfizer, which currently holds a 32 per cent stake in Haleon, said last year it planned to cut its ownership in a “slow and methodical” manner within months.

The offer price per share is expected to be announced on or around Mar 19, following the completion of a book-building process, Haleon said.

The sale of 630 million shares would be worth about £2.03 billion (S$3.5 billion), according to Haleon’s Friday closing price.

Shares in the FTSE 100-listed company dropped 2.2 per cent to 315 pence in early trading on Monday.

Haleon, which makes household brands such as Sensodyne toothpaste and Advil painkillers, was spun out of British drugmaker GSK in July 2022. It was formed in 2019 by merging GSK and Pfizer’s consumer healthcare businesses.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

GSK has since sold down its stake in the company, with the last sale in January bringing down its shareholding to 4.2 per cent from the 12.9 per cent it initially retained in the business. It is Haleon’s second-largest shareholder.

Haleon will also repurchase shares worth about £315 million from Pfizer off-market, it said on Monday.

The London-listed company last month announced plans to buy back £500 million of its shares this year amid firm demand for its products and progress in reducing debt.

Former parent GSK has also benefited from the spin-off, beating quarterly estimates and delivering an upbeat forecast for 2024 and beyond on the ramp-up of its vaccines and cancer drugs pipeline. REUTERS