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.
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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.
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