Johnson & Johnson is offering its shares in exchange for Kenvue shares.
Earlier this week, there was interesting news for investors focused on the healthcare sector. The company $JNJ-0.1% is offering to exchange shares for Kenvue stock at a 7% discount.
Introducing Kenvue:
$JNJ-0.1% subsidiary Kenvue Inc. operates in three segments: Self Care, Skin Health & Beauty, and Basic Health.
The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation and other products under the Tylenol, Nicorette and Zyrtec brands.
The Skin Health & Beauty segment provides face and body care, hair care, sun care and other products under the Neutrogena, Aveeno and OGX brands.
The Essential Health segment offers oral, baby, women's health and wound care products under the Listerine, Johnson's, Band-Aid and Stayfree brands.
Kenvue was the Consumer Health division of Johnson & Johnson $JNJ-0.1%, before it was spun off through an initial public offering (IPO) in May as part of a strategic decision to make both companies more agile and create long-term value for their respective shareholders.
Johnson & Johnson $JNJ-0.1% will spin off at least 80.1% of its shares in consumer health company Kenvue ( KVUE ) through an exchange offer, the company said Monday. J&J shareholders will have the option to exchange all, some or none of their common stock for Kenvue shares at a 7% discount.
Both$JNJ-0.1% and Kenvue reported better-than-expected results for the second quarter as demand for $JNJ'-0.1% s medical products grew and consumer spending on Kenvue brands like Band-Aid and Tylenol proved resilient.
I remember there was some debate around the Kenvue IPO around May of this year. $JNJ-0.1% is, dare I say, a favorite company among investors and is rewarding itself with a nice steady dividend and, these days, growth. I don't own the company but more and more I'm thinking I should add something else in this sector to my portfolio. Who's happy in your portfolio and what do you think of this news? 😊
Interesting, first I've heard of such a thing.
I can't imagine how that works.
I've never heard of such a swap before... is that some kind of standard thing? :)
How does this work, the exchange probably won't go through a regular online broker, will it?