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J&J Starts Share Exchange Offer for Consumer Health Spin-Off Kenvue

July 24 (Reuters) - Johnson & Johnson said on Monday it had launched an exchange offer under which its stockholders can opt for shares of Kenvue <KVUE.N>, its newly listed consumer health unit.

J&J, which currently owns an 89.6% stake in Kenvue, said it intends to split off at least 80.1% of the consumer health company's shares as part of the offering.

The offering will help J&J move a step closer in its plan to spin off the unit and focus on its larger medical devices and pharmaceuticals businesses.

The exchange will allow J&J shareholders to exchange their shares for those of Kenvue at a 7% discount, subject to conditions.

Kenvue, which debuted on the New York Stock Exchange in May, has a market capitalization of about $46 billion.

The offering comes days after J&J and Kenvue both forecast strong profit for this year.

‍Goldman Sachs and J.P. Morgan Securities are serving as dealer managers for the offering, J&J said.

J&J shares rose about 1% in premarket trading.

Reporting by Bhanvi Satija in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva

Source: Reuters

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