February 26, 2024


CEO of Johnson & Johnson’s consumer health business Kenvue Inc. and Paul Ruh Chief Financial Officer Thibaut Mongon are pictured during the initial public offering on the New York Stock Exchange (NYSE) in New York City, U.S., May 4, 2023.

Brendan McDermid | Reuters

Johnson & Johnson said on Thursday that its shareholders will soon be able to exchange their shares for KenviereThe company was spun off as a standalone consumer health company two months ago.

J&J Chief Financial Officer Joseph Wolk told the company’s shareholder meeting that J&J owns nearly 90 percent of Kenvue and plans to reduce its stake through an exchange offer that could start “as early as the next few days,” depending on market conditions. second quarter profit call.

The process, also known as a spin-off, will allow Johnson & Johnson shareholders to exchange all or some of their shares for common shares of Kenvue. Johnson & Johnson did not provide further details about the planned acquisition.

But for J&J, a spin-off is “the most advantageous form of spin-off,” Volker said. He added that after the spin-off, Kenvue will likely have a group of shareholders who want to own its shares.

Asked about J&J’s planned share swap offer, Kenvue CEO Thibaut Mongon told CNBC’s “Squawk on the Street” that the company was “satisfied with the shareholder response to the IPO.”

“We’ve seen a lot of consensus among new investors in seeing the potential in Kenvue, but I can tell you that we’re more than ready to walk away as a fully independent company,” he said.

Shares of Kenvue fell after Thursday’s announcement, even as the company beat earnings and revenue estimates for its first quarterly report since its IPO. Kenvue also initiated a quarterly cash dividend of about 20 cents per share for the third quarter, payable to shareholders on Sept. 7.

J&J’s second-quarter results also topped expectations on Thursday, sending the company’s shares up 6%.

Prior to this, Johnson & Johnson did not disclose whether it would divest its Kenvue shares through a spin-off or spin-off. The latter would involve distributing Kenvue shares to existing J&J shareholders, rather than giving them the option to exchange them.

The suggested quote times are astonishing.

Kenway’s IPO filing J&J agreed to wait 180 days to sell or transfer its stake in the new company, which would limit the spin-off until the end of October at the earliest, it said in April.

J&J can only do so with written permission, the document says Goldman Sachs and JPMorgan Chase, the lead underwriter for the IPO.