Gsk Share Discussion Threads

[tradermichael] 02/6/2022 09:14

Looks like Haleon will carry the debt:

Before the demerger, GSK is planning to take a dividend of more than £7bn and Pfizer more than £3bn, leaving Haleon with net debt of £10.3bn, a figure it plans to reduce over time.

[ianood] 02/6/2022 00:02

Don't overlook the tracker funds that will have to own it as a FT 100 share and the only free stock will come from Pfizer for starters

[tradermichael] 01/6/2022 19:04

The Pfizer intention has been known for a few months, no surprise ....;0)

[spyder] 01/6/2022 17:15

It looks like renewed weakness in the US markets did for GSK this afternoon.
That plus the Pfizer news - do we think that was priced in or a surprise? I hadn’t heard it before …

[spoole5] 01/6/2022 16:02

Back in the 1600s for the split then

[spyder] 01/6/2022 12:40

It is not unresonable to assume that Pfizer and GSK (but especially Pfizer) would not sell shares in Haleon at a market cap of less than £50m or possibly even £60m given that they rejected a bid of £50m and said they wouldn’t sell for less than £60m.
They would look a bit daft if they then cash out at £40m!

[the grumpy old men] 01/6/2022 12:18

I have found that share buybacks might give temporary support and perhaps a bigger divi pot for those shares remaining years hence

I feel that better use would be profitable projects or current divi payouts

In the short term directors might look good and help gain a bonus

[netcurtains] 01/6/2022 12:01

GtG: I think you're being naive.
Your argument is like saying share buybacks lead to share price rises - they dont - its still 50:50 - coin toss.

Likewise a sale of shares - especially a large number, can only really happen if there is HUGE demand for the shares.

[geckotheglorious] 01/6/2022 11:43

TM

True, an orderly disposal BUT market knows that there is a massive seller. 32% on the block. That'll take a while to get rid off in an orderly sale so mister market will price accordingly. ie it wont go anywhere except lower/stay flat.

[the grumpy old men] 01/6/2022 11:12

TOP NEWS: GSK files plan for consumer arm demerger with UK regulator

Wed, 1st Jun 2022 09:05
Alliance News

(Alliance News) - GSK PLC on Wednesday said it has submitted to the UK Financial Conduct Authority its plan

for the demerger of its consumer healthcare arm and its listing in London and New York as Haleon.

The separation will take the form of a demerger of at least 80% of GSK's current 68% share of the consumer business to GSK shareholders. The remaining 32% of Consumer Healthcare currently is held by US peer Pfizer Inc.

Haleon will be listed as ordinary shares in London and as American depositary shares on the New York Stock Exchange.

Haleon will provide consumer healthcare products in five categories: Oral Health, Pain Relief, VMS, Respiratory Health, Digestive Health and Other. Oral Health will be its largest component, having contributed 29% of revenue in 2021.

GSK will be a pure biopharmaceutical firm, focused on vaccines and specialty medicines.


On Tuesday, GSK said it has agreed to pay USD2.1 billion upfront, with potentially a further USD1.2 billion coming, to acquire Boston, Massachusetts-based Affinivax. Affinivax is a clinical-stage biopharmaceutical company focused on developing a novel class of pneumococcal vaccines.

GSK on Wednesday said it will carry out a share consolidation following the demerger in order to keep its share price

and earnings per share comparable to earlier periods.

The company called a general meeting for July 6 at the to approve the plan. The meeting will be held at the Sofitel London Heathrow, Terminal 5 hotel.

"The proposed demerger is the most significant corporate change for GSK in the last 20 years, creating two new leading companies, each with clear targets for growth and the ability to positively impact the health and lives of billions of people," GSK said.

GSK shares were up 0.2% at 1,736.20 pence early Wednesday in London.

By Tom Waite; [e-mail]

[tradermichael] 01/6/2022 11:07

Its not a panic sale, but an agreement on both sides to follow an orderly disposal, anything less would be suicidal on the prices they get:

"Pfizer has committed to selling its shares in a “disciplined manner” and has formed an “orderly marketing” agreement with GSK to ensure the two sellers do not destabilise stock in the new independent company. There will be a lock-up period of several months."

[geckotheglorious] 01/6/2022 11:06

Pfizer plans to exit GSK consumer health unit Haleon after spinoff



"32% will be held by Pfizer (which it intends to exit)"

Large overhang of stock. Be interesting to see if institutions step in and take sizeable chunks post demerger.

[netcurtains] 01/6/2022 11:02

How do we know that Pfizer will not sell its holding to a bidder for Haleon?
Do we have any guarantees that Haleon will be allowed to stay an independent company?

[geckotheglorious] 01/6/2022 10:59

Haleon will certainly face some selling pressure now it is known Pfizer are looking to sell out, completely. Certainly wont be buying Haleon any time soon, unless there is significant weakness.

Good luck in the demerger everyone.

Wont be following the new GSK post the split.

[spyder] 01/6/2022 07:57

I’m trying to understand what the consequences are for tracker funds with this demerger.
Haleon will become a major FTSE constituent, so the tracker funds will need to build a weighted position proportional to its market cap. However the funds will already have a position in current GSK, so will receive Haleon shares like the rest of us, but will this be sufficient to cover their full weighting in this new FTSE constituent?
Current GSK shareholders will only receive shares in 54.5% of Haleon, what about the 45.5% of Haleon that GSK shareholders, and therefore FTS trackers won’t receive shares for - will the Trackers become immediate buyers to cover this too?

[time for common sense] 01/6/2022 07:45

SCIENTISTS PLAN TO FEED INSECTS TO PRIMARY SCHOOLS / HUGO TALKShttps://hugotalks.com/2022/05/31/scientists-plan-to-feed-insects-to-primary-schools-hugo-talks/JUBILEE SCANDAL / HUGO TALKShttps://hugotalks.com/2022/05/30/jubilee-scandal-hugo-talks/

[spyder] 01/6/2022 07:30

Pfizer intends to exit its 32 per cent. ownership interest in Haleon in a disciplined manner, with the objective of maximising value for Pfizer shareholders.
However, Pfizer, GSK and each of the SLPs have agreed to a lock-up, ending on the day after the earlier of: (i) 10 November 2022; and (ii) the release by Haleon of a quarterly trading update in respect of a quarterly period ending after 30 June 2022.

[tradermichael] 01/6/2022 07:26

Yes,



6 July General Meeting for Shareholder vote
18 July Listing of new companies on London Stock Exchange
27 July GSK Q2 Results
September Haleon Interim Results

[garycook] 01/6/2022 07:25

GSK Shareholders will receive One Haleon share for every GSK share they hold.

[spyder] 01/6/2022 07:22

Demerger on MONDAY 18 JULY!

[spyder] 31/5/2022 22:11

Bigger than average volume today (>18m), that is unusual in recent times, I wonder what is going on?
It suggests a large seller, selling into strength? Not Elliott I hope.

[spyder] 31/5/2022 09:00

The share price just seem to be stuck at the moment. It must break soon …

[spyder] 31/5/2022 08:32

RSV results also expected in June.

[tradermichael] 31/5/2022 08:14

Yes, seems like Emma is expecting a windfall very soon and has gone shopping early.

Looking for a substantial recovery of share price through June, ahead of the mega demerger ...... ;0)