Pharmaceutical giant Pfizer Inc. announced on Tuesday that it has reduced its stake in British consumer healthcare company Haleon PLC by selling 640 million shares, raising approximately £2.43 billion ($3.24 billion) in the process. This move further decreases Pfizer's investment in Haleon, which is known for its well-recognized brands like Sensodyne toothpaste and Advil painkillers.

Pfizer Sells Shares In Haleon : Details of the Share Sale

Pfizer sold its Haleon shares at 380 pence per share, reflecting a sizable stake in the company. The sale marks another step in Pfizer’s gradual exit from Haleon, following the company's listing on the FTSE 100 index of the London Stock Exchange and the New York Stock Exchange in July 2022.

Haleon did not participate in the public share sale and will not receive any of the proceeds. However, it has agreed to buy back 60.5 million shares from Pfizer in a separate off-market transaction worth approximately £230 million. This buyback aligns with Haleon’s strategy of returning £500 million to shareholders through share repurchases this year.

Strategic Buyback Initiative

Haleon CEO Brian McNamara commented on the buyback, stating, "Our purchase of shares from Pfizer will successfully deliver on our commitment to return £500 million to shareholders through share buybacks this year." He added that the move was consistent with Haleon’s capital allocation priorities aimed at driving attractive shareholder returns while maintaining a strong balance sheet.

The company plans to cancel around 30 million of the shares it purchased from Pfizer, contributing to its ongoing £500 million share buyback program. The remaining 30.5 million shares will be held in treasury to fulfill employee share plans.

Pfizer Sells Shares In Haleon : Pfizer's Reduced Stake

Following the share sale and buyback, Pfizer’s stake in Haleon will decrease to 15% from 22.6%. The transactions are expected to close on Oct. 3. Earlier this year, Pfizer reduced its holding in Haleon to 24% by selling approximately 630 million shares and participating in a similar buyback deal with Haleon.

The sale of shares this week is part of Pfizer's plan to gradually wind down its stake in Haleon. After the transaction, Pfizer has entered into a 60-day lock-up period during which it will not sell additional Haleon shares.

Advisors on the Deal

A consortium of financial advisers is overseeing the share sale. BofA Securities and Goldman Sachs International are acting as joint global coordinators and bookrunners for the offering. They are joined by Deutsche Numis, HSBC, and RBC Capital Markets as joint bookrunners, while Barclays, BNP Paribas, Mizuho, PNC Capital Markets LLC, and Siebert Williams Shank & Co. LLC are serving as co-managers.

Both Pfizer and Haleon declined to disclose legal counsel for the transactions.