J&J's Offer for Kenvue Shares Oversubscribed
August 21 2023 - 7:51AM
Dow Jones News
By Dean Seal
Johnson and Johnson's $40 billion exchange offer for shares in
Kenvue was oversubscribed, with fewer than 24% of the tendered
shares set to be exchanged.
The healthcare giant said Monday that when the offer period
closed at the end of last week, investors tendered more than 802
million J&J shares to be swapped for Kenvue stock at a 7%
discount.
J&J intends to accept nearly 191 million, or about 23.8%, of
the tendered shares in exchange for 1.53 billion shares of Kenvue,
the operator of brands such as Listerine and Band-Aid that J&J
took public via spinoff in May.
The stock exchange offer was announced on July 24 and closed on
Friday, with the 23.8% proration coming in under expectations for
25% to 30% of tendered shares to be exchanged.
As a result, J&J shareholders will have 23.8% of their
tendered shares exchanged, except for owners of fewer than 100
J&J shares or an "odd-lot" of shares, who won't be subject to
the proration in accordance with the exchange offer's terms.
J&J will announce the final proration factor on Aug. 23 and
return tendered but unexchanged stock back to shareholders after
that time.
Once the exchange is completed, J&J will retain about 9.5%
of Kenvue's outstanding shares.
Kenvue shares rose 1.8% to $23.28 in premarket trading. J&J
shares slipped half a percentage point to $171.43.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
August 21, 2023 07:36 ET (11:36 GMT)
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