You’ve been compensated with the Haleon shares you now have.
The consolidation of GSK was to keep the share price roughly the same as before and after the demerger, which reduced the number of GSK shares every shareholder had, with every 5 shares being replaced by 4 new shares.
Fractional shares will be added up by the company and sold for a best possible price. Once they have been, they will be distributed to shareholders. See below:
You’ve forgotten that after the demerger the value of your 6 old shares dropped to reflect the fact that you were given 6 Haleon shares. Then 5 old shares were consolidated to give you 4 new shares.
Then the remaining 1 old share which is now 4/5 of a new share will be turned into cash which will be returned to you. The way GSK does this is by adding together everyone’s theoretical fractional new share and converting the sum into full new shares … these are then sold on the market. GSK will pay you the proceeds when this has been done.
Yes, the only problem is that the share averages are totally up the spout! It’s showing the GSK share average for me as being over £20 but that is only correct if the Haleon one is set to £0.00. If the Haleon one is eventually fixed at the value upon demerger (about £3.16 I think) then I think my GSK average should be reset to the just under £16 it was before the consolidation.
Now free from the pesky ties of having to sell toothpaste and painkiller GSK doesn’t have any excuse not to get on with their core market.
This is GSK’s first set of results as a newly focused biopharma company, and we have delivered an excellent second quarter performance, with strong growth in Specialty Medicines.
Sold the shares after the split because I was worried about future dividend. I reinvested the proceeds in the iShares Healthcare Innovation ETF. Only time will tell if this was a good move.
Has anyone been paid from the consolidation yet? X
For avoidance of doubt please remember that the sum involved will always be less than the value of a single (new) GSK share. Look for any recent small deposit in your a/c and ping hello@freetrade.io if you are still expecting cash.
Correct, and in answer to Kalz’s question, yes I have been paid.
Thanks ive emailed them its not there xx
Apologies if posted elsewhere and I’ve missed - here’s the link to the page on GSK’s website advising of how the Haleon share split can be calculated for tax purposes:
Big drop for Sanofi and haleon too, related to potential litigation over Zantac.
Yes I’ve taken the opportunity to top up Haleon as I’d wanted to do anyway, I expect their drop was an over-reaction to the Zantac case which will only really have consequences for GSK.
Talking of GSK, while this court case will hurt them short-term, they have survived previous court action with regard to their product so I fully expect they will survive this too. Tempted to top up (in small quantities) here too while shares are cheap.
Is it worth buying GSK now, even with the litigations that are going on? Any thoughts please? Thanks
I quickly looked at the thread. For full disclosure, I am not a GSK share holder (yet or maybe never:).
Terrific company with great dividends; what is looks like.
On the other hand, they just passed a medicine price control in the US and if that bill becomes permanent; well, things will look very different for “big pharma” in the near future and not necessarily for the better.
Hi
Is the pharma industry likely to be affected due to the medicare bill in US
Boost for GSK from urinary tract infections drug
GSK came out clean from the court regarding zantac and the cancer accusations.
Huge rally in price. Good that I have taken the opportunity to buy a couple of shares in November.
