FREE HALEON SHARES FOR GLAXO INVESTORS When it happens and what to expect
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hareholders in pharmaceutical company GSK (GSK) – also known as Glaxo or GlaxoSmithKline – have a big decision to make later in July when potentially 25% to 35% of the value of their investment will be handed back to them in the form of new shares in GSK’s consumer healthcare unit, Haleon. Investors will effectively have three choices; keep their shares in Haleon, sell the shares and reinvest back into GSK, or sell the shares and reinvest elsewhere. In this feature Shares reveals the key facts and investment considerations needed to make an informed decision. WHY IS IT HAPPENING? The board of GSK believe both companies will be able to operate more successfully as separate entities. The product focus and investment requirements of the two businesses are very different. For example, GSK spends around 15% of sales on research and development compared with 3% at Haleon. The split will allow GSK to focus on biopharmaceuticals, developing innovative vaccines and specialty medicines. Meanwhile, Haleon provides an opportunity to invest in a world-leading focused portfolio of categoryleading consumer health brands including Panadol painkillers and Sensodyne toothpaste. The name Haleon was created from old English words meaning ‘in good health’ and ‘strength’ from ‘Hale’ and ‘Leon’ respectively.
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| SHARES | 07 July 2022
By Martin Gamble Education Editor
WHEN IS THE DEMERGER? The demerger will happen on 18 July. Eligible GSK shareholders will be given one share in Haleon for each share owned in GSK. Haleon’s ordinary shares will be listed on the premium segment of the London Stock Exchange and should join the FTSE 100 index soon after. Prior to the demerger, the holding company for Haleon will pay dividends worth more than £7 billion to GSK and joint venture partner Pfizer (PFE:NYSE). Following the demerger at least 54.5% of Haleon will be held by GSK shareholders, 13.5%
