(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.
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.
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)