J&J starts share exchange offer for consumer health spin-off Kenvue
2023.07.24 10:08
© Reuters. FILE PHOTO: The Johnson & Johnson logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 29, 2019. REUTERS/Brendan McDermid/File Photo
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(Reuters) -Johnson & Johnson said on Monday it had launched an exchange offer under which its stockholders can opt for shares of Kenvue (N:), its newly listed consumer health unit.
J&J (NYSE:), which currently owns an 89.6% stake in Kenvue, said it intends to split off at least 80.1% of the consumer health company’s shares as part of the offering.
The offering will help J&J move a step closer in its plan to spin off the unit and focus on its larger medical devices and pharmaceuticals businesses.
The exchange will allow J&J shareholders to exchange their shares for those of Kenvue at a 7% discount, subject to conditions.
Kenvue, which debuted on the New York Stock Exchange in May, has a market capitalization of about $46 billion.
The offering comes days after J&J and Kenvue both forecast strong profit for this year.
Goldman Sachs and J.P. Morgan Securities are serving as dealer managers for the offering, J&J said.
J&J shares rose about 1% in premarket trading.
