GSK Completes Spin-off of Consumer Healthcare Business with Haleon IPO

Intelligent Finance APP learned that Emma Walmsley, CEO of GlaxoSmithKline (GSK.US), stated that the company's shareholders voted in favor of spinning off the consumer healthcare business. The stock of the new company, Haleon, is scheduled to be listed in London on July 18 local time.

At the GSK shareholder meeting vote, 99.8% of investors supported the two resolutions required for the spin-off of Haleon, paving the way for the largest London listing in a decade. The new company, Haleon, will become the world's largest standalone consumer health business, with brands including Sensodyne toothpaste and Panadol pain relievers, and is expected to be valued at up to £45 billion. Meanwhile, GSK will become a new company focused on vaccines and prescription medicines.

Upon completion of the demerger, all GSK shareholders will receive Haleon shares on a 1:1 basis for each GSK share held.

On Monday, GSK's share price will deduct the value of its consumer healthcare business, so its share price may fall. After the market closes on Monday, GSK will consolidate its share price to bring it back to roughly the same level as before the merger.

The company said this would ensure that its earnings per share and stock price would be in line with the previous period. The company also said that the stock consolidation ratio of GSK would depend on the trading volume and price volatility of GSK shares during Monday's trading session.