Kenvue (NYSE:KVUE) stock is in the news Monday after the company announced that Johnson & Johnson (NYSE:JNJ) is selling its stake in the business.
Kenvue has announced a secondary offering in which Johnson & Johnson will sell its entire stake of 182,329,550 shares of KVUE stock. It is exchanging these shares for the JNJ debt held by Goldman Sachs and JP Morgan.
After this debt-for-equity exchange, the selling shareholders will sell the shares of KVUE stock to the underwriters of the secondary offering. Goldman Sachs & Co. LLC, JPMorgan and BofA Securities are the joint lead book-running managers for the offering.
JNJ’s History With KVUE Stock
Investors will likely remember that Kenvue was spun off from Johnson & Johnson last year. Following that, the company took further actions to reduce its exposure to the business by selling some of its stock. With today’s news, Johnson & Johnson is now completely cutting off its ties to the company.
KVUE stock is up slightly on Monday alongside the secondary offering news. That comes with some 4.4 million shares traded, as compared to its daily average of about 16.9 million shares.
JNJ stock is also getting a slight boost today on the news. This comes with almost 1 million shares traded, as compared to its daily average of about 7.6 million units.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
