Novartis to spin off Alcon unit April 9

|About: Novartis AG (NVS)|By:, SA News Editor

Novartis (NYSE:NVS) plans to spin off its Alcon eye care business to shareholders on April 9 via a stock dividend to NVS shareholders. Specifically, NVS stockholders will receive one Alcon share for every five Novartis shares or ADRs held at the close of business on April 8.

Alcon shares will be listed on the SIX Swiss Exchange (SIX) and the New York Stock Exchange (NYSE) under the ticker "ALC."

Alcon has secured $3.5B in debt financing through a group of banks. Its credit rating with be investment grade following the transaction. Moody's and S&P have rated it Baa2 and BBB, respectively, with a stable outlook.

Novartis shares will continue to trade on the SIX under the ticker "NOVN" and its ADRs will continue to trade on the NYSE under the symbol "NVS."

In order to align trading between the two exchanges, there will be no "ex-distribution" trading of Novartis ADRs nor "when-issued" trading of Alcon shares prior to the spin-off. Trading in Alcon will start on April 9 on both exchanges.

NVS is down a fraction premarket.

Acon's 20-F

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