July 24 Reuters Johnson Johnson said on Monday it had launched an exchange offer under which its stockholders can opt for shares of Kenvue , its newly listed consumer health unit.

JJ, which currently owns an 89.6 stake in Kenvue, said it intends to split off at least 80.1 of the consumer health company39;s shares as part of the offering.

The offering will help JJ move a step closer in its plan to spin off the unit and focus on its larger medical devices and pharmaceuticals businesses.

The exchange will allow JJ shareholders to exchange their shares for those of Kenvue at a 7 discount, subject to conditions.

Kenvue, which debuted on the New York Stock Exchange in May, has a market capitalization of about 46 billion.

The offering comes days after JJ and Kenvue both forecast strong profit for this year.

Goldman Sachs and J.P. Morgan Securities are serving as dealer managers for the offering, JJ said.

JJ shares rose about 1 in premarket trading.

Reporting by Bhanvi Satija in Bengaluru; Editing by Shounak Dasgupta and Anil D39;Silva

Source Reuters