- Johnson & Johnson announced its plan to reduce its stake in Kenvue, the consumer health business it spun out earlier this year, by at least 80%. The reduction will be achieved through a stock exchange offer, where J&J shareholders can swap their shares for Kenvue's common stock at a 7% discount.
- J&J currently owns 89.6% of Kenvue's common stock, totaling over 1.72 billion shares. The exchange offer is expected to be tax-free and voluntary for investors, with the closing date set for August 18, which is earlier than originally anticipated.
Why it matters
- The significance of this news lies in Johnson & Johnson's decision to reduce its stake significantly in Kenvue. By offering J&J shareholders the opportunity to exchange their shares, the company aims to further separate its consumer health business and allow investors to become more directly involved in Kenvue's future.