GSK PLC (LSE:GSK, NYSE:GSK) begins the first part of the process to spin off Haleon PLC (LSE:HLN, NYSE:HLN), its consumer healthcare joint venture with Pfizer Inc (NYSE:PFE), on Friday, July 15.
After investors recently approved the demerger, the spin-off process is being done via a scrip dividend, where investors in GSK will get a share in Haleon for each one they own as of the close on Friday.
New investors will be able to buy GSK shares on Friday and still qualify to receive Haleon shares.
On Monday, 18 July, GSK shares will trade in its new consumer-healthcare-free state, or ex-Haleon or New GSK as some analysts have been calling it.
Monday will also see shares in Haleon will start trading in London.
GSK shares are also going through a consolidation process after one day of trading, a technical process to tighten up the number of shares in issue and this, the company says, will return the shares to “around the same” as before the demerger, and ensure comparability of the its earnings per share and share price with previous periods.
Pfizer and GSK will retain circa 45% of Haleon when it begins trading, with a lockup that prevents them selling any shares until 10 November (or whenever Haleon publishes third-quarter results, whichever happens first).
More precisely, Pfizer will own a 32% strake, GSK will own around 13.5% and GSK shareholders around 54.5%.
Next Friday, 22 July, Haleon stock (American depositary receipts) will be listed in the US.
What 'New GSK' will look like
Following the spin off, GSK in its new form will be a “fully focused biopharma company with a new purpose; to unite science, technology and talent to get ahead of disease”.
‘New GSK’ will be focused on four therapeutic areas: infectious diseases, HIV, oncology and immunology, including respiratory diseases.
The management team, led by chief executive Emma Walmsley, has pledged to prioritise innovation in vaccines and speciality medicines, maximising opportunities to prevent and treat diseases.
(Read what analysts say about GSK prospects post the split)
Welcome Haleon
Haleon will have an anticipated enterprise valuation of at least £40bn, including debt, with its market cap topping £30bn, big enough for the top fifth of the FTSE 100 at the next reshuffle.
It will also be the largest company listing in Europe for over a decade.
Haleon will generate sales of around £10.5bn this year, according to analyst calculations, with just over £2bn of underlying profit and between 16p and 17p of earnings per share.