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Thibaut Mongon, CEO and Chief Financial Officer Paul Roh, Kenvue Inc. Inc., a consumer health subsidiary of Johnson & Johnson, come together during the company’s initial public offering on the New York Stock Exchange (NYSE) in New York City, U.S., May 4, 2023.
Brendan McDiarmid | Reuters
Johnson & Johnson On Thursday, he said his shareholders would soon be able to swap their shares for shares Kinfuwhich sprang up as an independent consumer health company just a couple of months ago.
J&J owns approximately 90% of Kenvue and plans to reduce its stake with an exchange offer that could be launched “in the coming days,” Joseph Wolk, J&J’s chief financial officer, said during the company’s session, depending on market conditions. second quarter earnings communicate.
This process, also known as a split, will allow J&J shareholders to exchange all or a portion of their shares for common Kenvue stock. J&J did not provide further details about the planned show.
But Wolk said the breakup is “the most beneficial form of breakup” for J&J. He added that after the split, Kenvue will likely have a shareholder base that wants to own its shares.
Asked about J&J’s planned swap offering, Kenvue CEO Thibaut Mongon told CNBC’s “Squawk on the Street” that the company is “pleased with the way shareholders have been received for the IPO.”
“We see a great deal of alignment among our new investors in seeing Kenvue’s potential, but I can tell you we’re absolutely ready to leave as a completely independent company,” he said.
Kenvue shares tumbled after Thursday’s announcement, even though the company beat earnings and revenue estimates in its first quarterly report since the IPO. Kenvue also initiated a quarterly cash dividend of about 20 cents per share for the third quarter, paid to shareholders on Sept. 7.
J&J’s second-quarter results also beat expectations Thursday, sending the company’s stock up 6%.
Previously, J&J did not disclose whether it would cash in Kenvue shares through a split or split. The latter would involve distributing Kenvue shares to existing J&J shareholders rather than giving them an exchange option.
The proposed timing of the show came as a surprise.
Kinfu Subscription deposit In April, J&J said it had agreed to wait 180 days to sell or transfer shares of the new company, which would have limited any split until the end of October at the earliest.
The application said that J&J would only be able to do so with the written permission of J&J Goldman Sachs And JPMorgan Chase, the lead underwriters for the IPO.
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