Johnson & Johnson, the renowned healthcare company, has revealed its plans to file documents on Monday regarding an enticing offer for shareholders. The proposal aims to allow shareholders to trade their shares in Johnson & Johnson for Kenvue common stock.
The exchange will involve up to 1.5 million shares of Kenvue (KVUE) stock, which Johnson & Johnson currently owns, traded for outstanding shares of Johnson & Johnson (JNJ) common stock. This amounts to 80.1% of the total outstanding shares of the consumer health company. Shareholders will have the choice to exchange all, some, or none of their Johnson & Johnson shares for Kenvue stock.
With Johnson & Johnson currently holding about 89.6% of the total outstanding shares of Kenvue common stock, this exchange will result in Johnson & Johnson no longer being the controlling shareholder of Kenvue. As a result, Kenvue will operate as an independent company.
Although the news release doesn’t disclose the exact ratio of the exchange, it states that Johnson & Johnson plans to file paperwork, including a prospectus, with the Securities and Exchange Commission.
Exciting Progress for Kenvue
Kenvue’s Chief Executive Officer, Thibaut Mongon, expressed his enthusiasm, stating, “This filing marks an important milestone in Kenvue’s journey towards becoming a fully independent company,” in the news release.
During premarket trading on Monday, shares of Johnson & Johnson experienced a 0.8% increase, while Kenvue stock remained steady.