GSK reaffirms plan to float consumer arm in July despite market volatility (updated)

Colgate-Palmolive (India)

28/02/2022 11:45

(Adds debt details)
    Feb 28 (Reuters) - GSK  GSK.L  said on Monday it would float
its consumer healthcare business on the stock market in July,
confirming listing plans amid market jitters and after rejecting
overtures from Unilever  ULVR.L . 
    The new company, which GSK has named Haleon and which is the
world's largest consumer health business, would have an initial
dividend at the lower end of a 30-50% payout rate, GSK said in a
statement.
    Haleon is expected to have a net debt to adjusted core
profit ratio of up to four times following the demerger but debt
would be reduced to less than three times by the end of 2024,
part of a pledge to maintain a "strong investment-grade balance
sheet", GSK said.
    Haleon shares will be listed on the London Stock Exchange,
with American depositary receipt listed in the United States.
    Under a previously unveiled plan, GSK shareholders will
receive stock in the new consumer health group amounting to at
least 80% of the 68% stake that GSK currently owns in it. Pfizer
 PFE.N  owns the remaining 32%.
    GSK, which will focus on pharmaceuticals and vaccines, would
sell the remaining 20% stake in Haleon "in a disciplined manner"
 some time after the planned market debut, the group said.
Pfizer has also said it would seek to exit its shareholding.    
    The confirmed IPO plan comes even as the fallout on global
trade and finance from the conflict in Ukraine has disrupted the
schedule for Europe's and Britain's stock market listings over
the next few months.
    Delayed large public listings include Spanish bank Ibercaja,
German artificial limb maker Ottobock and GCP Co-Living REIT.
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GSK to name consumer healthcare unit 'Haleon' after spin-off   
 urn:newsml:reuters.com:*:nL4N2UX3JE
UPDATE 5-GSK rejects 50-billion-pound Unilever offer for
consumer assets     urn:newsml:reuters.com:*:nL1N2TV079
UPDATE 1-Former Tesco boss Lewis to chair GSK health spin-off   
 urn:newsml:reuters.com:*:nL8N2T516J
UPDATE 1-GSK appoints consumer head as CEO of new spin-off    
 urn:newsml:reuters.com:*:nL4N2OY2OS
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 (Reporting by Ludwig Burger in Frankfurt and Pushkala Aripaka
in Bengaluru; Editing by Susan Fenton)
 ((ludwig.burger@thomsonreuters.com; +49 30 220133634; Reuters
Messaging: ludwig.burger.thomsonreuters.com@reuters.net))