Haleon (HLN)

[idpickering]

I've started this new board on which to post news items for this new company after it's demerger from GSK PLC as of today.

Ian.

[Breelander]

And here's the first RNS from HLN

Haleon PLC
Completion of Demerger and Admission of Shares
RNS Number : 7249S
Haleon PLC
18 July 2022

https://www.investegate.co.uk/haleon-pl ... 00057249S/

[Gerry557]

I need to work out the effective costs for this, possibly 4/5ths but there might be a better way to calculate it.

It's on the to do list

[simoan]

I need to work out the effective costs for this, possibly 4/5ths but there might be a better way to calculate it.

It's on the to do list

I have used 4/5 to adjust the cost price of my GSK and 1/5 for Haleon. To be honest, I'm not that anal about it. However, here's what I received from HL:

Now the consolidation has happened, the total value of your new GSK and Haleon shares added together should be similar to the value of your original holding.

You will notice the cost price showing in your online account has changed. As approximately 18.9% of the value of your overall investment yesterday morning was represented by the Haleon shares, 18.9% of your original GSK cost has been removed and added as a cost to your new Haleon shares.

Haleon is now showing in my data source with some provisional numbers, and as expected the debt it has been loaded with looks a bit scary at 6x FY21 net profit. Trailing PER shows as 14.4 but no analyst estimates yet for FY22. I can't see any prospect of a dividend until the debt is reduced to a sensible level, which could take a while. The CEO, Dave Lewis, has his work cut out but he did a really good job turning around Tesco, so I'll probably stick with it for the time being.

All the best, Si

[Alaric]

I have used 4/5 to adjust the cost price of my GSK and 1/5 for Haleon. To be honest, I'm not that anal about it. However, here's what I received from HL:

Now the consolidation has happened, the total value of your new GSK and Haleon shares added together should be similar to the value of your original holding.

You will notice the cost price showing in your online account has changed. As approximately 18.9% of the value of your overall investment yesterday morning was represented by the Haleon shares, 18.9% of your original GSK cost has been removed and added as a cost to your new Haleon shares.

Any sightings of the agreed split of book costs for CGT purposes? It should be the same for all investors.

Admittedly mine is in an ISA account where it doesn't matter, but ii is showing zero book cost for Haleon shares this morning.

[EthicsGradient]

Without an explanation of whether it's official (and mine too is in a tax-free account, so it doesn't really matter for me), AJ Bell have divided my cost as 0.809:0.191 (possibly 0.8093:0.1907, but that might be putting too much accuracy on the calculation).

[77ss]

I've started this new board on which to post news items for this new company after it's demerger from GSK PLC as of today.

Ian.

For those with access, today's Times has a substantial article on Haleon. HOLD being the conclusion - somewhat unenthusiastically I felt.

[Dod101]

I've started this new board on which to post news items for this new company after it's demerger from GSK PLC as of today.

Ian.

For those with access, today's Times has a substantial article on Haleon. HOLD being the conclusion - somewhat unenthusiastically I felt.

I read that and had more or less come to the same conclusion, although I may be edging towards sell because I am left with a not very meaningful holding and so either need to beef it up or dispose of.

Dod

[tjh290633]

I have explained my working on another thread. Based on the closing prices last night of 1389.8p for GSK and 308.35p for Haleon, you calculate the share of the original cost of your GSK for Haleon as 308.35/1698.15, or 18.16%. The residual cost of your GSK holding is 81.84% of the original cost.

If you want to take the opening values on Monday, they are 1400.2p for GSK and 330p for HLN, as far as I can make out. That gives you 81% and 19%, near enough. I doubt that anybody is going to quibble over half a percent.

TJH

[Alaric]

Any sightings of the agreed split of book costs for CGT purposes? It should be the same for all investors.

It's now on the GSK website
https://www.gsk.com/media/9366/demerger ... -group.pdf

Seemingly the factors are

GSK 1389.80/ (1389.80 + 308.35 )
Haleon 308.35 / (1389.80 + 308.35 )

[tjh290633]

Any sightings of the agreed split of book costs for CGT purposes? It should be the same for all investors.

It's now on the GSK website
https://www.gsk.com/media/9366/demerger ... -group.pdf

Seemingly the factors are

GSK 1389.80/ (1389.80 + 308.35 )
Haleon 308.35 / (1389.80 + 308.35 )

That's what I said.

TJH

[daveh]

Any sightings of the agreed split of book costs for CGT purposes? It should be the same for all investors.

It's now on the GSK website
https://www.gsk.com/media/9366/demerger ... -group.pdf

Seemingly the factors are

GSK 1389.80/ (1389.80 + 308.35 )
Haleon 308.35 / (1389.80 + 308.35 )

That's what I said.

TJH

Me too, but nice to have it confirmed officially.

[NearlyThere]

Any sightings of the agreed split of book costs for CGT purposes? It should be the same for all investors.

It's now on the GSK website
https://www.gsk.com/media/9366/demerger ... -group.pdf

Seemingly the factors are

GSK 1389.80/ (1389.80 + 308.35 )
Haleon 308.35 / (1389.80 + 308.35 )

That's what I said.

TJH

ok somebody help me with basic math here

I had 1000 GSK shares prior to HLN split

Base cost per share £14.78

Using the apportionment I get:

New GSK base cost £12.10
HLN base cost £2.68

Which adds up to £14.78, all good.

After consolidation I only have 800 GSK shares. What is base cost per new GSK share?

Duh, I'm confused.

[Dod101]

Any sightings of the agreed split of book costs for CGT purposes? It should be the same for all investors.

It's now on the GSK website
https://www.gsk.com/media/9366/demerger ... -group.pdf

Seemingly the factors are

GSK 1389.80/ (1389.80 + 308.35 )
Haleon 308.35 / (1389.80 + 308.35 )

That's what I said.

TJH

ok somebody help me with basic math here

I had 1000 GSK shares prior to HLN split

Base cost per share £14.78

Using the apportionment I get:

New GSK base cost £12.10
HLN base cost £2.68

Which adds up to £14.78, all good.

After consolidation I only have 800 GSK shares. What is base cost per new GSK share?

Duh, I'm confused.

I would say your base cost per GSK share is now 5/4 * 12.10 which is £15.125

Dod

[Alaric]

ok somebody help me with basic math here

I had 1000 GSK shares prior to HLN split

Base cost per share £14.78

Using the apportionment I get:

New GSK base cost £12.10
HLN base cost £2.68

Which adds up to £14.78, all good.

After consolidation I only have 800 GSK shares. What is base cost per new GSK share?

You probably do better to work with book cost.

Previously it would have been £ 14780
After the split it's £ 12100

After the consolidation it's still £ 12100.

Depends what you want "base cost per share" to mean. If it's per "new" share it would be 12100 / 800 which is 15.125

[Dod101]

ok somebody help me with basic math here

I had 1000 GSK shares prior to HLN split

Base cost per share £14.78

Using the apportionment I get:

New GSK base cost £12.10
HLN base cost £2.68

Which adds up to £14.78, all good.

After consolidation I only have 800 GSK shares. What is base cost per new GSK share?

You probably do better to work with book cost.

Previously it would have been £ 14780
After the split it's £ 12100

After the consolidation it's still £ 12100.

Depends what you want "base cost per share" to mean. If it's per "new" share it would be 12100 / 800 which is 15.125

I am glad we agree.

Dod

[nmdhqbc]

ok somebody help me with basic math here

I had 1000 GSK shares prior to HLN split

Base cost per share £14.78

Using the apportionment I get:

New GSK base cost £12.10
HLN base cost £2.68

Which adds up to £14.78, all good.

After consolidation I only have 800 GSK shares. What is base cost per new GSK share?

You probably do better to work with book cost.

Previously it would have been £ 14780
After the split it's £ 12100

After the consolidation it's still £ 12100.

Depends what you want "base cost per share" to mean. If it's per "new" share it would be 12100 / 800 which is 15.125

does not effect the example above but FYI...
if your pre-split number of shares was not exactly divisible by 5 then there should a small cash payment due for that fraction of one share. the GSK cost basis for that will need to taken off the remaining GSK holding and allocated to the fractional share that has been sold for us. i've not got that cash yet. i think they said early august.

[monabri]

I was wondering why the big drop in HLN shareprice today. No sooner is HLN out of the blocks and there is a potential lawsuit.



https://www.google.co.uk/url?sa=t&sourc ... jnZKTujLwg

"Drugmaker GSK slid 2.1% after heavy selling in the previous session amid chatter over potential negative implication from U.S. lawsuits over Zantac, a drug that was withdrawn in 2019. Haleon, a consumer health company recently spun off from GSK, dropped 4.9%."

HLN down nearly 8% to 257p ...

(Unilever...watching HLN no doubt).

[simoan]

I was wondering why the big drop in HLN shareprice today. No sooner is HLN out of the blocks and there is a potential lawsuit.



https://www.google.co.uk/url?sa=t&sourc ... jnZKTujLwg

"Drugmaker GSK slid 2.1% after heavy selling in the previous session amid chatter over potential negative implication from U.S. lawsuits over Zantac, a drug that was withdrawn in 2019. Haleon, a consumer health company recently spun off from GSK, dropped 4.9%."

HLN down nearly 8% to 257p ...

(Unilever...watching HLN no doubt).

I saw this yesterday and did some research. It’s connected with NDMA which is thought to be carcinogenic but occurs naturally at low levels and is a by product of ranitidine aka Zantac which was manufactured and sold OTC by GSK, Sanofi and Pfizer. Best article I found was here:

https://www.webmd.com/heartburn-gerd/ne ... -link-hold

It seems the evidence is not cut and dried, and much of the research has not been peer reviewed,but of course, that won’t stop the ambulance chasing lawyers in the US. Sanofi has fallen most heavily, probably because they have been accused of deleting emails. I smell a buying opportunity based on what I’ve read to date.

[monabri]

It seems the evidence is not cut and dried, and much of the research has not been peer reviewed,but of course, that won’t stop the ambulance chasing lawyers in the US. Sanofi has fallen most heavily, probably because they have been accused of deleting emails. I smell a buying opportunity based on what I’ve read to date.

Are you referring to Sanofi?