Tianjin Pharmaceutical Holdings Ltd.

Haleon China Co., Ltd., entered into agreement to acquire 33% stake in Tianjin TSKF Pharmaceutical Co. Ltd from Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited (SHSE:600329) and Tianjin Pharmacy Holdings Co., Ltd. for CNY 4.5 billion on September 26, 2024. The acquisition is expected to be funded through a combination of Haleon's existing cash resources and new third-party Renminbi-denominated debt. As at May 31, 2024, Tianjin TSKF Pharmaceutical Co. Ltd reported Total assets as CNY 2.7 billion and Net assets as CNY 1 billion. The transaction is subject customary closing conditions including antitrust review, approval of shareholders of Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited, applicable regulatory clearances, and approval by the shareholders of Haleon China Co., Ltd. The deal has been unanimously approved by the Borad of Directors of Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited. The transaction is expected to close by the end of 2024. The proceeds from the disposal will be used to support business expansion, including potential acquisitions, to enhance research and development capabilities and for working capital and general corporate purposes. The deal will be accretive to EPS. Novus Corporate Finance Pte Ltd provided financial advisory in the deal. UBS Securities Co., Limited acted as provided financial advisory to Haleon China Co., Ltd.

Haleon China Co., Ltd., and Haleon CH SARL agreed to acquire 12% stake in Sino-American Tianjin Smith Kline & French Laboratories Ltd. from Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited for CNY 1.6 billion.

Haleon plc (“Haleon”) (LSE/NYSE: HLN) today announces that it has entered into an agreement to acquire an additional 33% equity interest in Tianjin TSKF Pharmaceutical Co. Ltd (“TSKF”), its joint venture in China from its partners, Tianjin Pharmaceutical Group (“TPG”) and Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited (“DRTG”) for a total consideration of RMB 4,465 million (c. £0.5 billion). TSKF accounted for c. 40% of Haleon’s China revenues in FY 2023 and manufactures and/or distributes leading brands such as Fenbid, Voltaren and Bactroban. This acquisition will increase Haleon’s participation in TSKF from 55% to 88% and deliver greater control and increased strategic and operational flexibility across the business. The acquisition is expected to be funded through a combination of Haleon’s existing cash resources and new third-party Renminbi-denominated debt. Subject to customary closing conditions, including the approval of DRTG’s shareholders and applicable regulatory clearances, the transaction is expected to close end of 2024 and to be accretive to EPS. In addition, Haleon and DRTG have agreed, effective from closing of the acquisition, that Haleon would have an option to acquire and DRTG an option to sell the remaining 12% shareholding in TSKF. Brian McNamara, Chief Executive Officer of Haleon commented: "China is a key strategic market for Haleon. Over the last three years, it has delivered strong market share growth and our acquisition of a further 33% in our JV partnership is an important milestone which is both strategically and commercially compelling. It reflects our commitment to this important market, the exceptional growth potential we see in China and is fully consistent with our capital allocation priorities to drive attractive returns for shareholders and maintain a strong investment grade balance sheet.