Bristol-Myers Squibb to spin off stake in Mead Johnson
Bristol-Myers Squibb will spin off its 83% holding in infant formula maker Mead Johnson in order to focus on its biopharmaceuticals business.
Bristol-Myers Squibb will spin off its 83% holding in infant formula maker Mead Johnson in order to focus on its biopharmaceuticals business.
The US-based pharmaceuticals manufacturer said the deal would start adding to its earnings in 2010.
Bristol-Myers Squibb shareholders will be able to exchange some, all or none of their shares for Mead Johnson stock tax-free and at a discount. For each US$1 of Bristol Myers Squibb stock exchanged, shareholders will receive around US$1.11 worth of Mead Johnson shares.
"Now is the right time to move forward with a split-off given the excellent performance of Mead Johnson since the IPO earlier this year and our confidence in the current and future performance of our biopharmaceuticals business," said James Cornelius, chairman and ceo of Bristol-Myers Squibb. "With a successful execution of this split-off, we fully consider ourselves a BioPharma company."
If the conditions to complete the exchange offer are met, Bristol-Myers Squibb says it will dispose of its entire 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 completed on 14 December.