Johnson & Johnson (NYSE:JNJ) (J&J) has launched a share exchange offer for its former consumer health business Kenvue which completed its initial public offering in May.
Shareholders of J&J can opt to exchange some or all of their shares for Kenvue stock at a 7% discount, subject to certain conditions, the company announced on Monday.
J&J currently owns an 89.6% stake in Kenvue and said it intends to split off at least 80.1% through the share exchange offering.
"The separation of Kenvue further sharpens Johnson & Johnson (NYSE:JNJ)’s focus on transformational innovation specifically in Pharmaceutical and MedTech," J&J CEO Joaquin Duato said in a statement.
"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."
The exchange offer is expected to expire, if it is not extended or terminated, on August 18, 2023.
J&J stock had added 0.7% to US$171.38 in pre-market trading on Monday, while Kenvue shares fell by 23% to US$23.30.
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