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GlaxoSmithKline PLC on Monday said Haleon, the company to result from the proposed demerger of its Consumer Healthcare arm, is expected to list in July.
The Brentford, England-based pharmaceutical company said its new consumer healthcare business is expected to list on a premium segment of the London Stock Exchange, with American Depository Receipts to list in the US in July.
This follows the previous announcement back in June of a proposed demerger of its Consumer Healthcare unit where at least 80% of GSK's holding would be sold to shareholders.
The unit is a joint venture between GSK and Pfizer Inc, with GSK holding 68%, and Pfizer 32%. Unilever PLC had bid three times unsuccessfully for the division. Last Tuesday, GSK announced the new company resulting from the demerger would be called Haleon.
The demerger is still subject to shareholder approval.
Haleon will house brands such as Sensodyne toothpaste, Panadol & Advil pain relief, and Centrum vitamins, and be headquartered in Weybridge, England.
Haleon is expected to deliver annual organic sales growth between 4% and 6% in the medium term, with "sustainable moderate expansion" of adjusted operating margin. GSK's Consumer Healthcare business achieved GBP9.5 billion in sales over 2021.
Haleon's margin in 2022 will reflect synergies from the integration of Pfizer's portfolio of around GBP600 million, which will offset GBP175 million to GBP200 million of new costs associated with running a standalone public limited company.
GSK expects continued high cash conversion for Haleon, targeting a net debt to adjusted earnings before interest, tax, depreciation and amortisation ratio of less than three times. This would be reduced from the ratio of up to four times at the time of the demerger.
Subject to approval by Haleon's board, the initial dividend is likely to be "at the lower end" of a 30% to 50% payout ratio range.
Shares in GSK were down 1.4% to 1,542.00 pence each in London on Monday during midday trading.
GSK Chief Executive Officer Emma Walmsley commented: "Today is an important milestone for GSK as we formally introduce Haleon to investors. It comes ahead of what promises to be the most significant corporate change for GSK in the last 20 years, to create two new growth companies that will positively impact the health of billions of people."
Following the demerger, GSK will retain 20% of its holding in Haleon, with Pfizer to keep its 32% stake.
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