Johnson & Johnson has announced the launch of an exchange offer under which its stockholders can opt for shares of Kenvue, its newly listed consumer health unit.
J&J, 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.
“The separation of Kenvue further sharpens Johnson & Johnson’s focus on transformational innovation specifically in Pharmaceutical and MedTech,” said Joaquin Duato, chairman and chief executive officer of Johnson & Johnson.
“We believe now is the right time to distribute our Kenvue shares, and we are confident that a split-off is the appropriate path forward to bring value to our shareholders.”
Kenvue, has forecast full-year profit above Wall Street estimates, betting on resilient demand for its skincare and self-care products, such as Neutrogena and Tylenol.
Kenvue
Kenvue, which debuted on the New York Stock Exchange in May, has a market capitalisation of about $46 billion (€41.5 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.
Article by Reuters, additional reporting by ESM
