LONDON, Oct 12 — GlaxoSmithKline is “firmly on track” to spin off its consumer health business next year, the British drugmaker said today, afterreported the unit could attract bids from private equity firms such as Advent, CVC and KKR.
A GSK spokesperson declined to comment on whether the company had received takeover interest in the division, a joint venture with US drugmaker Pfizer.“GSK is far advanced with its plan for the separation of Consumer Healthcare,” the GSK representative said, adding the drugmaker was on course for the split in mid-2022.
Under GSK’s plan, shareholders will receive stock in the new consumer health group amounting to at least 80 per cent of the 68 per cent stake that GSK currently owns in it. Pfizer owns the remaining 32 per cent. Elliott, which in July confirmed holding a significant stake in GSK, said then that a conservative estimate would value GSK’s shareholding in the consumer unit at about £34 billion — working out to roughly £50 billion overall.Another activist investor, Bluebell Capital Partners, which holds a smaller stake in GSK, said last month the consumer arm should attract interest from trade buyers and, potentially, private equity investors.