Mead Johnson Nutrition said that it intends to file a registration statement with the Securities and Exchange Commission detailing the proposed exchange offer from Bristol-Myers Squibb (BMS).
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The US pharmaceutical giant announced plans on Monday (16 November) to spin off baby formula group Mead Johnson Nutrition. The company said it expects the split-off to be a tax-advantaged way to further deliver value to its shareholders.
For each $1.00 of Bristol-Myers Squibb common stock accepted in the exchange offer, the tendering shareholder will receive approximately $1.11 of Mead Johnson common stock.
If conditions to completion of the exchange offer are met, BMS will dispose of its entire ownership interest in Mead Johnson through the exchange offer and, if necessary, a subsequent spin-off of any shares it still owns after the exchange offer is complete.
Commenting on the announcement, Mead Johnson CEO Stephen Golsby said: “This transaction represents the important final step in our journey to be a fully independent public company. We believe the decision to split-off Mead Johnson reflects confidence in the success of our growth strategy and our strong financial performance since our IPO in February, as well as BMS’ objective to focus on their core BioPharma business.”
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By GlobalDataThe company said it expects to incur costs incremental to its previous expectations for specified items in the fourth quarter of 2009 estimated in the range of $0.08 to $0.13 per share.
