J&J says Kenvue tender offer was oversubscribed, expects 23.8% of tendered shares will be exchanged

Johnson & Johnson
JNJ,
-2.52%
said Monday that 802.7 million shares of its common stock were validly tendered and not validly withdrawn in a Kenvue Inc.
KVUE,
+0.59%
tender offer that expired at midnight Friday. The tender offer was oversubscribed, as expected, and J&J intends to accept about 191 million of the tendered shares in exchange for the 1.53 billion shares of Kenvue’s common stock that it owned. J&J spun out Kenvue, which houses brands like Tylenol and Listerine, earlier this year. The company is “accepting only a portion of the shares of its common stock that were validly tendered and not validly withdrawn, on a pro rata basis in proportion to the number of shares tendered,” though shareholders who had fewer than 100 shares of J&J’s common stock and who validly tendered all their shares won’t be subject to proration. J&J expects that about 23.8% of the tendered J&J shares will be exchanged. The company will retain about 9.5% of the outstanding shares of Kenvue after the exchange offer is complete. J&J shares were off 2% in Monday morning trading while Kenvue shares were ahead by roughly the same amount.