The shareholders of Novartis had approved the spin-off at the extraordinary general meeting (EGM) on Sep. 15, 2023. In addition, key regulatory approvals have been obtained, including the approval by SIX Exchange Regulation for the listing of the Sandoz shares on the SIX Swiss Exchange, Novartis said.

Key ratings agencies, Novartis mentioned it its respective press release, have confirmed Sandoz’ credit rating will be investment grade following the spin-off, placing the company in a strong position among its peers.

Sandoz has secured debt financing of $3.75 billion (in various currencies) through a group of banks which will also support the company with a revolving credit facility of $1.25 billion to serve as an undrawn backstop facility.

The Spin-off will be completed via distribution of a dividend-in-kind by Novartis, which is expected to occur on Oct. 4, 2023. Each Novartis shareholder will receive one Sandoz share for every five Novartis shares and each Novartis ADR holder will receive one Sandoz ADR for every five Novartis ADRs. Novartis shareholders and ADR holders will receive a cash amount for any fractional interest.

Completion of the planned spin-off is subject to satisfaction of certain conditions.