Pfizer, one of the largest pharmaceutical companies in the world, has recently sold a stake in the consumer healthcare company Haleon for a staggering $3.5 billion. This move comes as Pfizer aims to reduce its ownership of Haleon in a gradual manner over the next few months.
Haleon, known for its popular products such as Sensodyne toothpaste and Advil painkillers, was formed in 2022 when Pfizer and GSK merged their consumer healthcare business units. Since then, Pfizer has held a significant stake in the company, currently owning approximately 32% of the shares. GSK, on the other hand, holds about 4.2% of the company.
This recent stake sale represents Pfizer’s first move to reduce its ownership since Haleon went public. The sale brings Pfizer’s stake down to 22.6%, from the previous 25.8%. GSK, which originally held a 12.9% stake, has also been gradually selling its shares over the past year.
The numbers involved in this transaction are truly staggering. Pfizer sold 594 million shares at a price of £3.08 per share and around 196.5 million American Depository Shares (ADS) at a price of $7.85 per share. This amounts to a total sale of approximately $3.1 billion. Additionally, Sensodyne has announced that it will be repurchasing £315 million ($399.92 million) worth of shares from Pfizer as part of the deal.
The stake sale and buyback are expected to close on March 21st, and as a result, Pfizer’s shares will be locked away for 90 days. This move is aimed at preventing any potential fluctuations in the stock price due to the significant change in ownership.
It is important to note that this headline and article have been corrected to reflect the accurate value of the stake sale, which is $3.5 billion, not $3.9 billion as originally reported. The correction also includes the accurate value of the stake sale, which is $3.1 billion, excluding Haleon’s off-market repurchases.
In conclusion, Pfizer’s stake sale in Haleon for $3.5 billion marks a significant move in the pharmaceutical industry. As Pfizer gradually reduces its ownership in the company, it will be interesting to see how this impacts both Haleon’s future and Pfizer’s overall strategy in the consumer healthcare sector.