UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the
month of January 2022
Commission
File Number 001-15170
GlaxoSmithKline plc
(Translation
of registrant's name into English)
980 Great West Road, Brentford, Middlesex, TW8 9GS
(Address
of principal executive office)
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form
20-F . . . .X. . . . Form 40-F . . . . . . . .
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ____
Issued: 15 January 2022, London UK
Update - GSK Consumer Healthcare
GlaxoSmithKline (GSK) plc today confirms that it has received three
unsolicited, conditional and non-binding proposals from Unilever
plc to acquire the GSK Consumer Healthcare business. The latest
proposal received on 20th December 2021 was for a total acquisition
value of £50 billion comprising £41.7 billion in cash and
£8.3 billion in Unilever shares. The Consumer Healthcare
business is a Joint Venture between GSK and Pfizer, with GSK
holding a majority controlling interest of 68% and Pfizer
32%.
GSK rejected all three proposals made on the basis that they
fundamentally undervalued the Consumer Healthcare business and its
future prospects.
The Board of GSK is strongly focused on maximising value for GSK
shareholders and has carefully evaluated each Unilever proposal. In
doing so, the Board and its advisers assessed the proposals
relative to the financial planning assessments completed to support
the proposed demerger of the business in mid-2022, including the
sales growth outlook set out below.
Global leader in Consumer Healthcare
The Consumer Healthcare business has been transformed since 2014
through the successful integrations of GSK's business with the
Novartis consumer health portfolio in 2015 and the Pfizer portfolio
in 2019. Importantly, this transformation has also provided a
platform to scale and optimise many aspects of the Consumer
Healthcare business including divesting lower growth brands,
introducing a new R&D/innovation model, optimising the supply
chain and manufacturing network, alongside continued investment in
new digital, data and analytic platforms and
capabilities.
This has resulted in the creation of a leading global consumer
healthcare business with annual sales of £9.6 billion in
20211.
The business has an exceptional portfolio of world-class,
category-leading brands; global scale with footprint and
distribution capability to serve more than 100 markets; strong
brand building, innovation and digital capabilities; and offers a
unique proposition that combines trusted science with human
understanding.
The business is led by a highly skilled management team with deep
experience in consumer healthcare and FMCG with strong commitment
to delivery on its purpose and growth ambitions.
Superior growth and highly attractive financial
profile
The business is well-positioned to sustainably grow ahead of its
categories in the years to come. The fundamentals for the £150
billion consumer healthcare sector are strong, reflecting an
increased focus on health and wellness, significant demand from an
ageing population and emerging middle class, and sizeable unmet
consumer needs.
Over the period 2019-2021 the Consumer Healthcare business
delivered a 4% organic sales growth CAGR2 outpacing
its categories and despite the adverse impact of the COVID
pandemic.
Superior sales growth for the business is expected to result from a
strategy that puts the consumer at the heart of the business to
better address every-day health and wellness needs, in particular
by increasing household penetration of its leading brands and
capitalising on new and emerging growth opportunities arising from
innovation and the use of new technologies and digital platforms,
all underpinned by continued strong execution and financial
discipline. Over the medium term, superior sales growth is expected
to be primarily driven by continued momentum of key brands in Oral
Care, VMS, and Pain Relief; accelerating innovation in the US and
China; and further growth in emerging markets.
Reflecting these trends, and the investments made and planned for
the business, the Board of GSK is confident that the Consumer
Healthcare business can sustainably deliver annual organic sales
growth in the range of 4-6% (CER) over the medium
term.
The combination of superior organic sales growth, operating margin
expansion and consistent high cash generation will, we believe,
offer both existing and prospective shareholders a highly
attractive financial profile that facilitates continued investment
in growth, the delivery of attractive returns and the opportunity
of continued participation in long-term value
creation.
Proposals fundamentally failed to reflect the intrinsic value of
the business and its potential
The Board of GSK unanimously concluded that the proposals were not
in the best interests of GSK shareholders as they fundamentally
undervalued the Consumer Healthcare business and its future
prospects.
The Board of GSK therefore remains focused on executing its
proposed demerger of the Consumer Healthcare business, to create a
new independent global category-leading consumer company which,
subject to approval from shareholders, is on track to be achieved
in mid-2022.
Capital Markets event
GSK intends to share further details of the strategy, brands,
capabilities and operations, including detailed financial
information and future growth ambitions for the new Consumer
Healthcare business at a virtual Capital Markets Day for investors
and analysts on Monday 28th February 2022.
Notes
1Unaudited. (2021 full year
results for GSK due to be announced on 9th February
2022)
2 Excluding the impact of
brands divested/ under review, on a CER basis
About GSK
GSK is a science-led global healthcare company. For further
information please visit www.gsk.com/about-us.
GSK enquiries:
|
|
|
|
Media enquiries:
|
Tim Foley
|
+44 (0) 20 8047 5502
|
(London)
|
|
Kathleen Quinn
|
+1 202 603 5003
|
(Washington DC)
|
|
|
|
|
Analyst/Investor enquiries:
|
Nick Stone
|
+44 (0) 7717 618834
|
(London)
|
|
Sonya Ghobrial
|
+44 (0) 7392 784784
|
(Consumer)
|
|
James Dodwell
|
+44 (0) 20 8047 2406
|
(London)
|
|
Mick Readey
|
+44 (0) 7990 339653
|
(London)
|
|
Josh Williams
|
+44 (0) 7385 415719
|
(London)
|
|
Jeff McLaughlin
|
+1 215 751 7002
|
(Philadelphia)
|
|
Frannie DeFranco
|
+1 215 751 4855
|
(Philadelphia)
|
Cautionary statement regarding forward looking
statements
This announcement contains statements that are, or may be deemed to
be, "forward-looking statements". GSK cautions investors that any
forward-looking statements or projections made by GSK, including
those made in this announcement, are subject to risks and
uncertainties that may cause actual results to differ materially
from those projected. Such factors include, but are not limited to,
those described in the
Company's Annual Report on Form 20-F for 2020, GSK's 2021 Q3
Results and any impacts of
the COVID-19 pandemic. GSK undertakes no obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise. Accordingly, no
assurance can be given that any particular expectation will be met
and investors are cautioned not to place undue reliance on the
forward-looking statements.
Registered
in England & Wales:
No.
3888792
Registered Office:
980
Great West Road
Brentford,
Middlesex
TW8
9GS
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorised.
|
GlaxoSmithKline plc
|
|
(Registrant)
|
|
|
Date: January
17, 2022
|
|
|
|
|
By:/s/ VICTORIA
WHYTE
--------------------------
|
|
|
|
Victoria Whyte
|
|
Authorised
Signatory for and on
|
|
behalf
of GlaxoSmithKline plc
|
GSK (NYSE:GSK)
Historical Stock Chart
From Aug 2024 to Sep 2024
GSK (NYSE:GSK)
Historical Stock Chart
From Sep 2023 to Sep 2024