Johnson & Johnson has announced its intention to file documents on Monday outlining an offer that will allow shareholders to trade their shares in Johnson & Johnson for Kenvue common stock. In this transaction, Johnson & Johnson plans to exchange up to 1.5 million shares of Kenvue stock. This constitutes 80.1% of the total outstanding shares of the consumer health company. Shareholders will have the flexibility to exchange some, all, or none of their Johnson & Johnson shares for Kenvue stock.
Currently, Johnson & Johnson owns approximately 89.6% of the total outstanding shares of Kenvue common stock. However, once this exchange is complete, Johnson & Johnson will no longer be the majority shareholder of Kenvue. Consequently, Kenvue will operate as a separate and independent company.
While the exact exchange ratio between Johnson & Johnson (JNJ) and Kenvue (KVUE) stock has not been disclosed in the news release, the company plans to submit relevant paperwork, including a prospectus, to the Securities and Exchange Commission.
“This filing represents a significant milestone in Kenvue’s journey towards full independence,” commented Thibaut Mongon, CEO of Kenvue.
In premarket trading on Monday, shares of Johnson & Johnson experienced a 0.8% increase, while Kenvue stock remained unchanged.
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