Johnson & Johnson Announces Preliminary Results of Kenvue Inc. Exchange Offer
August 21 2023 - 6:20AM
Business Wire
Johnson & Johnson (NYSE: JNJ) today announced that, based on
preliminary results, its previously announced offer to its
shareholders to exchange their shares of Johnson & Johnson
common stock for shares of Kenvue Inc. (NYSE: KVUE) (“Kenvue”)
common stock owned by Johnson & Johnson was oversubscribed. The
exchange offer expired at 12:00 midnight, New York City time, at
the end of the day on August 18, 2023. Under the terms of the
exchange offer, 8.0324 shares of Kenvue common stock will be
exchanged for each share of Johnson & Johnson common stock
accepted in the exchange offer.
According to the exchange agent, Computershare Trust Company,
N.A., 802,707,331 shares of Johnson & Johnson common stock were
validly tendered and not validly withdrawn, including 250,407,279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 that were validly tendered and
not validly withdrawn, on a pro rata basis in proportion to the
number of shares tendered. Shareholders who owned fewer than 100
shares of Johnson & Johnson common stock, or an "odd-lot," who
have validly tendered all of their shares, will not be subject to
proration, in accordance with the terms of the exchange offer.
Based on the total number of shares of Johnson & Johnson
common stock reported to be tendered prior to the expiration of the
exchange offer, it is estimated that approximately 23.8% of the
tendered shares of Johnson & Johnson common stock will be
exchanged, assuming all shares tendered by guaranteed delivery
procedures are delivered under the terms of the exchange offer.
This preliminary proration factor is subject to change based on the
number of tendered shares that satisfy the guaranteed delivery
procedures, as well as the number of "odd-lot" shares that were
validly tendered and are not subject to proration. Johnson &
Johnson expects to announce the final proration factor on August
23, 2023, promptly following the expiration of the guaranteed
delivery period. Shares of Johnson & Johnson common stock
tendered but not accepted for exchange will be returned to the
tendering shareholders in book-entry form promptly after the final
proration factor is announced. Following the completion of the
exchange offer, Johnson & Johnson will retain approximately
9.5% of the outstanding shares of Kenvue common stock.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are
the dealer managers for the exchange offer.
About Johnson & Johnson
At Johnson & Johnson, we believe good health is the
foundation of vibrant lives, thriving communities and forward
progress. That’s why for more than 135 years, we have aimed to keep
people well at every age and every stage of life. Today, as the
world’s largest, most diversified healthcare products company, we
are committed to using our reach and size for good. We strive to
improve access and affordability, create healthier communities, and
put a healthy mind, body and environment within reach of everyone,
everywhere. We are blending our heart, science and ingenuity to
profoundly change the trajectory of health for humanity.
Forward Looking Statements
This communication contains certain statements about Johnson
& Johnson and Kenvue that are forward-looking statements.
Forward-looking statements are based on current expectations and
assumptions regarding Johnson & Johnson’s and Kenvue’s
respective businesses, the economy and other future conditions. In
addition, the forward-looking statements contained in this
communication may include statements about the expected effects on
Johnson & Johnson and Kenvue of the exchange offer, the
anticipated timing and benefits of the exchange offer, Johnson
& Johnson’s and Kenvue’s anticipated financial results, and all
other statements in this communication that are not historical
facts.
Because forward-looking statements relate to the future, by
their nature, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and are
detailed more fully in Johnson & Johnson’s and Kenvue’s
respective periodic reports filed from time to time with the
Securities and Exchange Commission (the “SEC”), the Registration
Statement referred to below, including the Prospectus forming a
part thereof, the Schedule TO and other exchange offer documents
filed by Johnson & Johnson or Kenvue, as applicable, with the
SEC. Such uncertainties, risks and changes in circumstances could
cause actual results to differ materially from those expressed or
implied in such forward-looking statements. Forward-looking
statements included herein are made as of the date hereof, and
neither Johnson & Johnson nor Kenvue undertakes any obligation
to update publicly such statements to reflect subsequent events or
circumstances, except to the extent required by applicable
securities laws. Investors should not put undue reliance on
forward-looking statements.
Additional Information and Where to Find It
This communication is for informational purposes only and is not
an offer to sell or exchange, a solicitation of an offer to buy or
exchange any securities and a recommendation as to whether
investors should participate in the exchange offer. Kenvue has
filed with the SEC a registration statement on Form S-4 (the
“Registration Statement”), including the Prospectus forming a part
thereof, and Johnson & Johnson has filed with the SEC a
Schedule TO, which more fully describes the terms and conditions of
the exchange offer. INVESTORS AND SECURITY HOLDERS ARE URGED TO
READ THE PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS FILED WITH
THE SEC, WHEN THEY BECOME AVAILABLE AND BEFORE MAKING ANY
INVESTMENT DECISION, BECAUSE THEY CONTAIN IMPORTANT INFORMATION.
None of Johnson & Johnson, Kenvue or any of their respective
directors or officers or the dealer managers appointed with respect
to the exchange offer makes any recommendation as to whether you
should participate in the exchange offer.
Holders of Johnson & Johnson common stock may obtain copies
of the Prospectus, the Registration Statement, the Schedule TO and
other related documents, and any other information that Johnson
& Johnson and Kenvue file electronically with the SEC free of
charge at the SEC’s website at http://www.sec.gov. Holders of
Johnson & Johnson common stock will also be able to obtain a
copy of the Prospectus by clicking on the appropriate link on
http://www.JNJSeparation.com.
Johnson & Johnson has retained Georgeson LLC as the
information agent for the exchange offer. To obtain copies of the
exchange offer Prospectus and related documents, or for questions
about the terms of the exchange offer, you may contact the
information agent at 1-866-695-6074 (toll-free for stockholders,
banks and brokers) or +1-781-575-2137 (all others outside the
United States).
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version on businesswire.com: https://www.businesswire.com/news/home/20230821033927/en/
Investor Relations: Jessica Moore
investor-relations@its.jnj.com
Media Relations: Jake Sargent
media-relations@its.jnj.com
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