[1/2]The Johnson & Johnson logo is displayed on a screen on the trading floor of the New York Stock Exchange (NYSE) in New York, the United States, May 29, 2019. Portal/Brendan McDermid/File Photo
Jul 24 (Portal) – Johnson & Johnson (JNJ.N) announced on Monday that it had launched an exchange offer, in which its shareholders could exchange shares in Kenvue
J&J, which currently owns 89.6% of Kenvue, said it intends to divest at least 80.1% of the consumer healthcare company as part of the offer.
The offer will help J&J move one step closer to its plan to spin off the entity and focus on its larger medical device and pharmaceutical businesses.
The exchange allows J&J shareholders to exchange their shares for those of Kenvue at a discount of 7%, subject to certain conditions.
Kenvue, which debuted on the New York Stock Exchange in May, has a market cap of around $46 billion.
The offer comes days after J&J and Kenvue both forecast strong earnings for this year.
Goldman Sachs and JP Morgan Securities are acting as dealer managers for the offering, J&J said.
J&J shares are up about 1% in premarket trading.
Reporting by Bhanvi Satija in Bengaluru; Edited by Shounak Dasgupta and Anil D’Silva
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