Johnson & Johnson Launches Exchange Offer To Separate Kenvue

(RTTNews) - Consumer health company Kenvue Inc. (KVUE) announced on Monday that it intends to file with the SEC regarding Johnson & Johnson's (JNJ) proposal of separating Kenvue.

As per the proposal terms, Johnson & Johnson intends to exchange up to 1,533,830,450 shares of Kenvue common stock that it owns, representing 80.1 percent, for shares of Johnson & Johnson common stock.

Thibaut Mongon, Kenvue's CEO said, "This filing marks an important milestone in Kenvue's journey towards becoming a fully independent company."

The drug major currently owns around 89.6 percent of the total outstanding shares of Kenvue. If the exchange offer is executed then Johnson & Johnson will no longer be the controlling shareholder of Kenvue, and the company will operate as a separate and independent entity.

In pre-market activity, shares of Kenvue are trading at $24, down 0.04% or $0.01 on the New York Stock Exchange and shares of JNJ are trading at $171.53 up 0.79%.