Pfizer talks to banks about unit’s $3bn part-flota

Pfizer is considering plans to raise $3bn this year through a part-flotation of its animal health division, as it examines ways to spin off a business valued at as much as $18bn. The pharmaceuticals group, the world’s second largest by market capitalisation, has been talking to bankers about arranging an initial public offering that would place up to 19.9 per cent of the unit’s shares in the autumn, in what is known as an equity carve-out or partial spin-off, according to people familiar with the talks. Floating a stake in a business ahead of a spin-off is a common tactic to establish a shareholder following, improving its ability to trade as a stand­alone company. The value of spin-offs globally is set to double this year.

Source: Financial Express