Shire to set up UK-listed, Jersey incorporated holding company

UK pharmaceutical firm Shire plans to create a new UK-listed, Jersey incorporated holding company for the group but stressed there would be no changes in the day to day conduct of the business, its strategy or dividend. The new holding company will have its primary listing on the London Stock Exchange and its American Depositary Shares will be traded on Nasdaq. The move will not involve job losses or relocation of existing personnel out of the UK but, now that the vast majority of its revenues are generated from outside the UK, Shire says its shareholders would be better served by having an international holding company with a group structure that is designed "to help protect the group's taxation position, and better facilitate its financial management." The move is a response to the UK's high taxation of foreign profits. Shire is also moving its tax base to Ireland where it will benefit from a headline corporate tax rate of only 12.5%.