25.09.2023 • NewsNovartisSandozdivestment

Sandoz Spin-off from Novartis to Start on October 4, 2023

Novartis today confirmed the plan to spin off 100% of its generic drugs arm Sandoz, with trading of the new company’s shares as well as ADRs (American Depositary Receipts) to start on Oct. 4, 2023.

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.

© REB Images/Getty Images
© REB Images/Getty Images

Free Expert Insights

Dual‑Targeting Breakthroughs
Advancements in Bispecific Antibody Development

Dual‑Targeting Breakthroughs

Unlock the latest breakthroughs in bispecific antibody development! Download Wiley’s free Expert Insights eBook to explore cutting-edge dual-targeting strategies, advanced purification methods, and bioanalytical technologies transforming immunotherapy and cancer treatment.

Special Issue

Circular Plastics Economy
Explore the Future of Plastics

Circular Plastics Economy

This special CHEManager issue explores the industry’s pivotal shift towards a more sustainable, circular plastics value chain. Readers will find expert analysis and real-world solutions for today’s most pressing recycling and regulatory challenges.

most read