GSK spins off consumer arm Haleon in biggest European listing for a decade

Haleon becomes the world’s biggest consumer health business, but debuted with a lower-than-expected valuation

Haleon, whose brands include Sensodyne toothpaste, Voltaren and Panadol painkillers, has become the world’s biggest standalone consumer health business.  

Shares in the company began trading at 330 pence on Monday morning, giving the business a market valuation of around GBP 30.5 billion (USD 36.4 billion). It is ranked in the top 20 companies by market cap in London's FTSE index.  

Haleon's debut price was largely in line with market expectations, but its current valuation is lower than expected - coming in below the enterprise value of GBP 50 billion that Unilever was prepared to pay for the business at the beginning of the year. GSK rejected the offer at the time, saying it was too low. 

The business has grown in size over the years after merging with consumer product portfolios from Novartis and Pfizer, and now generates annual sales of GBP 10 billion.  

With the demerger complete, GSK will become New GSK, focused solely on vaccines and prescription drugs. All GSK shareholders receive one Haleon share for each GSK share they own. 

Pfizer will retain its 32% stake in Haleon, which it intends on selling off over time. GSK will hold up to 13.5% in Haleon, while the remaining 54.5% will be owned by GSK shareholders. After close of trading on Monday, GSK will consolidate its share price, returning it to roughly the same as before the demerger. 

The ratio for the GSK share consolidation will depend on fluctuations in the volume and price of GSK shares during trading on Monday, the company said.