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Johnson & Johnson spinoff Kenvue will be added to the S&P 500.
Justin Sullivan/Getty Images
Kenvue
will join the
S&P 500
following the completion of
Johnson and Johnson
’s
exchange offer for Kenvue stock, according to S&P Dow Jones Indices.
Kenvue (ticker: KVUE) is the consumer health company that was taken public by Johnson and Johnson (JNJ) in May. J&J is offering its investors the chance to exchange their stock for Kenvue shares in a deal that expires on Friday, Aug. 18.
Kenvue will be added to the S&P 500 index on a date to be announced upon the successful completion of the exchange offer, S&P Dow Jones Indices said in a press release late Wednesday. J&J is offering to exchange as much as 1.7 billion Kenvue shares, a roughly 90% stake, for its own stock.
The move by S&P Dow Jones Indices could increase investor participation in the exchange offer since index funds now have a greater incentive to make the swap with Kenvue being added to the S&P 500 index. Indexers own more than 20% of J&J, which is one of the largest healthcare companies in the world. Kenvue owns such brands as Listerine, Band-Aid, and Tylenol
The J&J offer is expected to be oversubscribed, resulting in a proration, meaning that J&J holders may get to swap just a fraction of their shares for Kenvue.
Kenvue shares are up nearly 2% to $23.88 in after-hours trading after falling 0.1% to $23.35 in regular trading Wednesday.
Write to Andrew Bary at [email protected]
Source: https://www.barrons.com/articles/kenvue-stock-price-jnj-sp-500-5abc3158?siteid=yhoof2&yptr=yahoo