Reckitt Benckiser (RB), British household goods firm has decided to spin off its US-based pharmaceuticals division, it announced after a strategic review.
Reckitt Benckiser (RB), British household goods firm has decided to spin off its US-based pharmaceuticals division, it announced after a strategic review. The company will float the unit, RB Pharmaceuticals, on the London stock market later this year, it said in a statement which also revealed that first-half net profits jumped by almost a quarter.
"We believe that RB Pharmaceuticals has the potential to deliver significant long term value creation as a stand-alone business," said Reckitt chief executive Rakesh Kapoor in the earnings release.
"We have therefore decided to pursue a demerger of RB Pharmaceuticals with a separate UK listing. We expect this to take place over the next 12 months.
"This will also allow RB to focus on its core strategy to be a global leader in consumer health and hygiene."
Reckitt added on Monday that group net profits surged by 23 percent to £812 million ($1.4 billion, 1.0 billion euros) in the six months to June 30 from a year earlier, boosted partly by cost-cutting.
Revenues however dipped seven percent to £4.667 billion in the reporting period, hit by adverse currency moves. At constant exchange rates, revenues grew three percent.
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In morning deals, Reckitt shares jumped to the top of the risers board on the London stock market.
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Source-AFP