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Highlights
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Haleon PLC completes a significant share repurchase from Pfizer Inc.
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The transaction concludes a £500 million share buyback program initiated in August.
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Pfizer’s ownership stake in Haleon will decrease from 22.6% to 15%.
Haleon PLC {LSE:HLN} the FTSE 100 consumer health group known for its prominent brands such as Sensodyne, has finalized an agreement to repurchase a substantial quantity of its shares from its former co-parent, Pfizer Inc. This move is part of Haleon's ongoing strategy to optimize its capital structure following its establishment as a separate entity from GSK.
The agreement involves the acquisition of approximately 30.2 million shares at a price of 308p per share, amounting to a total of £230 million. This transaction marks the completion of Haleon's £500 million share repurchase initiative, which was launched in August. As part of this program, the shares acquired will be canceled, effectively reducing the number of shares outstanding and enhancing shareholder value.
The remainder of the shares will be retained as treasury shares, designated for fulfilling Haleon’s obligations related to its existing employee share plans scheduled for 2025. This strategic approach not only reinforces the company’s commitment to returning value to stakeholders but also supports its future employee incentive programs.
Following this transaction, Pfizer's ownership in Haleon will be reduced significantly, decreasing from 22.6% to 15%. This marks another step in Pfizer's gradual divestment from Haleon, which was formed as a joint venture with GSK and subsequently spun out and listed in July 2022.
Brian McNamara, Chief Executive Officer of Haleon, noted that this share repurchase represents a key milestone in the ongoing process of restructuring ownership and solidifying Haleon’s position in the market. This strategic move demonstrates Haleon's focus on leveraging its resources effectively while preparing for future growth opportunities in the consumer health sector.
