Pfizer reduces stake in Haleon with US $3 billion share sale

USA – Pfizer has sold £2.50 billion (US $3.05 billion) worth of shares in Haleon, reducing its stake in the British consumer healthcare company from approximately 15% to 7.3%, according to JPMorgan Securities PLC.

The transaction involved the sale of 700 million shares at 357 pence each, representing a 2.8% discount to Haleon’s closing price on Tuesday.

Haleon, based in Weybridge, England, is a manufacturer of well-known consumer healthcare products, including Sensodyne toothpaste, Panadol and Advil painkillers, and Centrum vitamins.

The company was formed in 2019 as a joint venture between Pfizer and GSK PLC’s consumer health businesses.

In July 2022, Haleon was listed on the London Main Market, with Pfizer initially retaining a 32% stake, which it has gradually reduced over time.

Following this sale, Pfizer’s ownership in Haleon now stands at 7.3%. JPMorgan and Morgan Stanley acted as joint global coordinators and bookrunners for the transaction.

Notably, GSK sold its remaining 4.2% stake in Haleon in May 2023. Pfizer has committed not to sell or transfer any of its remaining equity in Haleon for the next 60 days.

Haleon’s shares, which rose by 17% in 2024, gained an additional 0.7% to reach 369.7 pence in Wednesday morning trading, aligning with broader gains in the FTSE 100. The recent share sale represents 7.7% of Haleon’s issued share capital.

Pfizer had previously announced its intention to reduce its stake in Haleon “slowly and methodically.”

In October 2023, it sold a US $3.3 billion stake in the company, and this recent transaction continues that process. Despite the sale, Pfizer remains Haleon’s largest shareholder.

The U.S. pharmaceutical giant has been under pressure from hedge fund Starboard Value to address concerns about its underperformance.

Meanwhile, Haleon has faced challenges of its own, including missing third-quarter forecasts in 2024 due to a stronger pound and weaker sales of its Panadol painkiller in Australia and the Middle East.

Leading the latest sale were JPMorgan Chase & Co. and Morgan Stanley, supported by BNP Paribas, HSBC, Mizuho Financial Group, UBS, Bank of America, Deutsche Bank, Goldman Sachs, and Loop Capital Markets as additional bookrunners and co-managers.