Shareholders of Johnson & Johnson JNJ will soon have the opportunity to exchange their shares for those of Kenvue Inc. KVUE, the consumer health company that spun off from J&J two months ago, CNBC reports.
What Happened: J&J, which owns nearly 90% of Kenvue shares, plans to reduce its stake through an exchange offer that could launch “as early as the coming days,” according to J&J CFO Joseph Wolk.
The split-off process will allow J&J shareholders to exchange all or a portion of their shares for Kenvue’s common stock.
See Also: Trump Media SPAC Deal: Accused Insider Traders Plead Not Guilty
Describing the split-off as the “most advantageous form of separation” for J&J, Wolk added that Kenvue will most likely have a shareholder base that wants to own its stock, after the split.
Kenvue CEO Thibaut Mongon expressed satisfaction with the shareholders’ reception of the company’s initial public offering in May.
"We see a lot of alignment among our new investors in seeing the potential of Kenvue, but I can tell you that we are fully ready to leave as a fully independent company," he said.
Read Next: Cathie Wood’s Ark Invest Piles Taiwan Semiconductor Shares, Sells Stock Of This Tesla Rival
Johnson Johnson logo. Image By Sundry Photography Via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4 Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
