Kenvue Inc (KVUE)

[DewDiligence]

JNJ divests 9.5% KVUE stake @$20.00/sh:

https://finance.yahoo.com/news/kenvue-announces-pricing-secondary-offering-231300336.html

Kenvue Inc. announced today the pricing of its previously announced secondary underwritten public offering (the "Offering") of 182,329,550 shares of its common stock (the "Shares") at a public offering price of $20.00 per share.

…Kenvue is not selling any shares of common stock and will not receive any proceeds from the sale of the Shares in the Offering or from the debt-for-equity exchange (as described below).

In connection with the Offering, Johnson & Johnson (NYSE: JNJ) is expected to exchange the Shares for indebtedness of Johnson & Johnson expected to be held by Goldman Sachs & Co. LLC and J.P. Morgan (collectively, the "Selling Shareholders"). Following the debt-for-equity exchange, if consummated, the Selling Shareholders intend to sell the Shares to the underwriters in the Offering. After the completion of the Offering, Johnson & Johnson will no longer own any shares of Kenvue’s common stock.

It has always been JNJ’s intention to divest its equity stake in KVUE approximately one year after KVUE’s IPO, so this transaction signifies nothing in particular about KVUE.