GSK Corporate action: Demerger

[Simpo Two]

For those with GSK:

[i]'GSK plc has announced a demerger of Haleon Group from the GSK Group, subject to approval at a General Meeting due to be held on 6 July 2022. The Haleon plc shares are expected to obtain a premium listing on the London Stock Exchange.

For every 1 GSK plc share you own on 15 July 2022 you will receive 1 share in Haleon plc. Your Haleon plc shares will arrive in your Fidelity account on or just after 18 July 2022.

GSK plc has also announced a proposed consolidation which is intended to provide consistency in the GSK share price pre and post consolidation. A separate announcement has been made for the consolidation.

GSK plc has also recently completed a name change from GlaxoSmithKline plc to GSK plc which became effective from 16 May 2022.

If you have a regular savings, phased investment or withdrawal plan linked to GSK plc, it will continue without change.'[/i]



The price doesn't seem to have changed significantly. Presume carry on as usual?

[Jon39]

Simpo Two said:

For those with GSK: .....

I have been in since Beecham was an independent business.
They then merged with SmithKline, followed by being acquired by Glaxo.

Pharmaceuticals fit my long-term portfolio core requirements, but this investment has not become a 'powerhouse'.
Added more shares to the holding during a couple of market crashes.
In my early days, Zantac was one of Glaxo's big selling drugs, but once off patent, it could be seen for sale without prescription in chemists. Little profit at that stage. We have to hope they can find more wonder drugs. That Is of course the costly gamble in this business. Very clever employees in the industry and it is something which the UK is one of the World leaders.

Will be interesting to see if the two separate parts, become worth more that the combined entity now.
There might be a prospect of takeover, with the consumer business.

Edited by Jon39 on Monday 20th June 16:40

[RC1807]

Simpo Two said:

The price doesn't seem to have changed significantly. Presume carry on as usual?

It hasn't been approved at the AGM yet. Price changes will likely start then.
Of course, when the demerger / spin off has settled, you can review both share prices to compare to the previous GSK share to see the true effect - but don't forget to account for the consolidation on GSK.

[Jon39]

RC1807 said:

Of course, when the demerger / spin off has settled, you can review both share prices to compare to the previous GSK share to see the true effect - but don't forget to account for the consolidation on GSK.

Simply add the two market cap values together.

Of course the market has known about the split for a long time, so in theory any added value of having two businesses, should already be in the GSK share price.