Novartis spin-off of Sandoz generics drug unit to occur on or around Oct. 4
On Aug. 18, Novartis issued the invitation to an Extraordinary General Meeting of Novartis shareholders, scheduled to take place on Sept. 15, in relation to the proposed 100% Spin-off of Sandoz, the Generics and Biosimilars business of Novartis.
At the EGM, shareholders of Novartis will vote on two proposals:
- A special distribution by Novartis AG of a dividend-in-kind to effect the Spin-off of Sandoz Group AG; and
- A reduction of the share capital of Novartis AG in connection with the Spin-off of Sandoz Group AG.
The EGM has been called after the Novartis board of directors unanimously endorsed and recommended that shareholders approve the proposed separation of Sandoz via a Spin-off.
[Read more: Novartis to separate Sandoz generics drug unit into standalone company]
This is a key step in the separation process, which was initiated in August 2022 when Novartis announced its intention to separate the Sandoz business to create an independent company by way of a 100% Spin-off. Novartis said it is confident that the Spin-off is in the best interests of shareholders, creating a European champion and a global leader in generics and biosimilars, and a more focused Novartis.
Looking ahead, both companies would be able to focus on maximizing value creation for their shareholders by prioritizing capital and resource allocation, employing separate capital structure policies, and increasing management focus on their respective business needs, the company noted.
[Read more: Novartis' Sandoz generic drugs unit attracts attention]