Johnson & Johnson reports preliminary results of Kenvue exchange offer

Johnson & Johnson’s (JNJ) offer to its shareholders to exchange their shares of Johnson & Johnson common stock for shares of Kenvue (KVUE) common stock owned by Johnson & Johnson was oversubscribed. 8.0324 shares of Kenvue common stock will be exchanged for each share of Johnson & Johnson common stock accepted in the exchange offer. 802,707,331 shares of Johnson & Johnson common stock were tendered, including 250,407,279 shares that were tendered by notice of guaranteed delivery. Johnson & Johnson intends to accept 190,955,436 of the tendered shares in exchange for the 1,533,830,450 shares of Kenvue common stock owned by Johnson & Johnson. Because the exchange offer was oversubscribed, Johnson & Johnson is accepting only a portion of the shares of its common stock, on a pro rata basis in proportion to the number of shares tendered. It is estimated that approximately 23.8% of the tendered shares of Johnson & Johnson common stock will be exchanged. Johnson & Johnson expects to announce the final proration factor on August 23. Following the completion of the exchange offer, Johnson & Johnson will retain approximately 9.5% of the outstanding shares of Kenvue common stock.