GSK boss upbeat over spin-off of consumer healthcare unit

theguardian.com:

GlaxoSmithKline boss Emma Walmsley said she was “extremely confident” that it would complete the giant spin-off of its consumer healthcare unit in July, despite the market volatility caused by Russia’s invasion of Ukraine.

The FTSE 100 company is demerging the unit, named Haleon last week, in what is expected to be the largest London listing for a decade and the biggest demerger in 20 years. GSK on Monday pledged to investors that the new company, which will run brands such as Sensodyne toothpaste, Panadol painkillers and Centrum vitamin supplements, would offer strong growth opportunities.

The financial market turmoil caused by the invasion of Ukraine has already delayed the initial public offerings of some companies in Europe and the US. However, demergers are somewhat less dependent on market conditions as they do not usually involve the same need to persuade new investors to back them.

GSK employs 400 people in Ukraine, and lists two businesses in Kyiv in its annual report, although it does not own any factories in the country.

“We utterly condemn this invasion and the harm that it is causing the people of Ukraine,” Walmsley said. “We strongly support the actions being taken by the UK and other governments, including sanctions.”

She added that the safety of employees was GSK’s priority, and that she had personally spoken to the country managers. The company was helping with efforts to relocate workers where possible, and is in talks with Direct Relief, a charity, about donations of medicines.

The Haleon demerger has come with Walmsley under pressure from activist investors including Elliott Management and Bluebell Capital Partners, and after the rejection of a £50bn bid for the company from Unilever, another FTSE 100