Johnson & Johnson's Dramatic Stake Reduction in Kenvue through Exchange Offer

Johnson & Johnson plans to reduce its stake in Kenvue, its consumer health business, by at least 80% through a stock exchange offer. J&J shareholders will have the option to swap their shares for Kenvue's common stock at a 7% discount. The split-off is voluntary and is expected to be tax-free. The move aims to sharpen J&J's focus on its pharmaceutical and medtech businesses. The exchange offer is set to close on August 18, earlier than expected, as J&J received a waiver dismissing the share lockup period associated with Kenvue's IPO in May.