Novartis to Spin Off Sandoz, Seeking Shareholder Approval on September 15

SmartCom Finance APP learned that Swiss pharmaceutical giant Novartis (NVS.US) extended an invitation on Friday to hold an extraordinary general meeting of shareholders on September 15 to discuss matters related to the spin-off of its generic drug subsidiary, Sandoz. The Novartis board of directors has already approved the proposal. The spin-off is expected to take place around October 4.

The Swiss pharmaceutical giant said that the spin-off will be carried out by distributing Sandoz shares to existing shareholders. Shareholders will receive 1 Sandoz share for every 5 Novartis shares held, or 1 Sandoz American Depositary Receipt (ADR) for every 5 Novartis ADRs.

Once approved, Sandoz will be listed on the Swiss Stock Exchange and trade ADRs in the United States (American Depositary Receipts)Plan. These American Depositary Receipts will not be listed on exchanges within the United States.

As of press time, Novartis fell 0.43% pre-market on Friday, trading at $101.29.