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J&J (JNJ) to Keep 9.5% Stake in Kenvue Post Share Exchange
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Johnson & Johnson (JNJ - Free Report) announced that the previously announced offer, which invited the company’s shareholders to exchange their common stock holdings for those of Kenvue (KVUE - Free Report) , has been oversubscribed. Currently, J&J owns about 89.6% stake in Kenvue’s common stock.
Following the expiration of the exchange offer last week, J&J’s existing shareholders tendered around 802.71 million shares of the company’s common stock. Since J&J wishes to accept about 190.96 million shares tendered, representing 23.8% of its outstanding shares, it will accept shares on a pro-rata basis in proportion to the number of tendered shares. However, the proration will not impact shareholders who own less than 100 shares of J&J’s common stock.
Per the terms of the exchange offer, 8.0324 shares of Kenvue’s common stock will be exchanged for each J&J share. Hence, the company will trade over 1.5 billion shares of Kenvue’s common stock, which represents 80.1% of the latter’s common stock.
After completing the exchange offer, J&J intends to retain a 9.5% stake in Kenvue’s common stock.
Management expects to report the final proration factor tomorrow, i.e., Aug 23, after the guaranteed delivery period expires.
Shares of J&J have lost 5.3% year to date against the industry’s 7.8% growth.
Image Source: Zacks Investment Research
In May, J&J spun off its consumer health segment into Kenvue, whose shares began trading on the New York Stock Exchange with effect from May 4.
After completing the exchange offer, Kenvue will operate as a separate and fully independent company. Post completion of this transaction, J&J will become a two-sector company focused on the Pharmaceutical and MedTech fields.
In the past 30 days, estimates for AN2 Therapeutics’ 2023 loss per share have narrowed from $3.56 to $3.36. During the same period, the earnings per share estimates for 2024 have improved from $3.73 to $3.45. Year to date, shares of ANTX have surged 44.3%.
Earnings of AN2 Therapeutics beat estimates in two of the last four quarters, while missing the mark on one occasion and meeting the mark on another. On an average, the company witnessed a negative earnings surprise of 2.08%. In the last reported quarter, AN2’s earnings beat estimates by 4.71%.
In the past 30 days, estimates for Annovis Bio’s 2023 loss per share have narrowed from $4.89 to $4.38. During the same period, the loss estimates per share for 2024 have improved from $3.18 to $2.77. Year to date, shares of ANVS have lost 4.2%.
Earnings of Annovis Bio beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 13.40% on average. In the last reported quarter, Annovis’ earnings beat estimates by 6.14%.
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J&J (JNJ) to Keep 9.5% Stake in Kenvue Post Share Exchange
Johnson & Johnson (JNJ - Free Report) announced that the previously announced offer, which invited the company’s shareholders to exchange their common stock holdings for those of Kenvue (KVUE - Free Report) , has been oversubscribed. Currently, J&J owns about 89.6% stake in Kenvue’s common stock.
Following the expiration of the exchange offer last week, J&J’s existing shareholders tendered around 802.71 million shares of the company’s common stock. Since J&J wishes to accept about 190.96 million shares tendered, representing 23.8% of its outstanding shares, it will accept shares on a pro-rata basis in proportion to the number of tendered shares. However, the proration will not impact shareholders who own less than 100 shares of J&J’s common stock.
Per the terms of the exchange offer, 8.0324 shares of Kenvue’s common stock will be exchanged for each J&J share. Hence, the company will trade over 1.5 billion shares of Kenvue’s common stock, which represents 80.1% of the latter’s common stock.
After completing the exchange offer, J&J intends to retain a 9.5% stake in Kenvue’s common stock.
Management expects to report the final proration factor tomorrow, i.e., Aug 23, after the guaranteed delivery period expires.
Shares of J&J have lost 5.3% year to date against the industry’s 7.8% growth.
Image Source: Zacks Investment Research
In May, J&J spun off its consumer health segment into Kenvue, whose shares began trading on the New York Stock Exchange with effect from May 4.
After completing the exchange offer, Kenvue will operate as a separate and fully independent company. Post completion of this transaction, J&J will become a two-sector company focused on the Pharmaceutical and MedTech fields.
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Zacks Rank & Other Stocks to Consider
J&J currently carries a Zacks Rank #2 (Buy). A couple of other top-ranked stocks in the overall healthcare sector include AN2 Therapeutics (ANTX - Free Report) and Annovis Bio (ANVS - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, estimates for AN2 Therapeutics’ 2023 loss per share have narrowed from $3.56 to $3.36. During the same period, the earnings per share estimates for 2024 have improved from $3.73 to $3.45. Year to date, shares of ANTX have surged 44.3%.
Earnings of AN2 Therapeutics beat estimates in two of the last four quarters, while missing the mark on one occasion and meeting the mark on another. On an average, the company witnessed a negative earnings surprise of 2.08%. In the last reported quarter, AN2’s earnings beat estimates by 4.71%.
In the past 30 days, estimates for Annovis Bio’s 2023 loss per share have narrowed from $4.89 to $4.38. During the same period, the loss estimates per share for 2024 have improved from $3.18 to $2.77. Year to date, shares of ANVS have lost 4.2%.
Earnings of Annovis Bio beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 13.40% on average. In the last reported quarter, Annovis’ earnings beat estimates by 6.14%.