Pfizer to reduce stake in Sensodyne producer, Haleon

Pharmaceutical giant Pfizer has revealed its intention to decrease its ownership stake in Haleon, the popular toothpaste brand Sensodyne producer. The move, announced amidst reports circulating in the media, will see Pfizer reducing its stake from 32 percent to 24 percent in Haleon.

According to sources, Pfizer plans to lower its holding in Haleon by selling approximately 630 million shares, amounting to over £2 billion. The offer price for these shares is expected to be disclosed today, March 19, and will be determined through a book-building process.

Dave Denton, Pfizer’s Chief Financial Officer, emphasized that the sale would be executed deliberately and carefully to avoid adversely affecting Haleon’s market valuation.

In response to the proposed sale, Haleon has committed to purchasing £315 million worth of shares as part of the offer, with an additional commitment to repurchase £500 million of its stock this year. Based on the current share price of Haleon, Pfizer stands to receive approximately £2.3 billion in total proceeds from the sale.

This decision comes after Pfizer’s announcement last May, indicating its intention to divest part of its stake in Haleon to fund shareholder returns and alleviate debts incurred from acquiring biotechnology company Seagen for $43 billion.

Haleon, a joint venture formed in 2019 through the merger of Pfizer and fellow pharmaceutical firm GSK’s consumer healthcare businesses, boasts a portfolio of well-known brands, including Advil, Aquafresh, and Beechams. Following its spin-off two years ago, Haleon achieved a market value of approximately £31 billion, marking one of the largest European listings since Glencore’s public offering in 2011 on the London Stock Exchange.