In key news on UK stocks, GlaxoSmithKline PLC (GB:GSK) announced its plan to divest the remaining 4.2% stake in its spin-off consumer healthcare company Haleon PLC (GB:HLN). GSK will sell around 385 million shares in Haleon at 324p per share to generate proceeds of £1.25 billion. The sale signifies GSK’s fourth divestment, effectively marking its exit from Haleon. Following the completion of the sale, the company will no longer possess any ordinary shares in Haleon. GSK shares opened at a loss of 0.76% today as of writing.
Based in the UK, GlaxoSmithKline is a global pharmaceutical company with a presence in roughly 80 countries.
GSK Offloads Haleon Stake
Haleon was formed in July 2019 through the merger of GSK’s and Pfizer’s (NYSE:PFE) consumer healthcare businesses. Later on, in July 2022, GSK separated Haleon as an independent listed company. Currently, Haleon is among the leading consumer healthcare companies in the world, with well-known brands like Sensodyne, Centrum, Otrivin, and Eno.
Similar to GSK, Pfizer has gradually reduced its stake since Haleon’s IPO. It now has an 18.3% stake, down from 32% and ultimately intends to fully divest.
Meanwhile, GSK’s divestment strategy regarding its stake in Haleon has been consistent with its previous commitments. From May 2023 to May 2024, GSK has conducted four divestments (including the recent one), selling a cumulative total of 1,195 million ordinary shares in Haleon, amounting to £3.9 billion.
With this move, GSK aims to focus effectively on its vaccines and infectious diseases portfolio, while also funding its strategic deals.
Is GSK a Good Stock to Buy Now?
According to the consensus on TipRanks, GSK stock has received a Moderate Buy rating. This rating is backed by eight Buy, four Hold, and two Sell recommendations. The GSK share price forecast is set at 1,939.10p, indicating a projected increase of 9.4% from the current level.
