3M (NYSE: MMM) has recently announced the approval of the spin-off of its health care business, which will be officially known as Solventum Corporation. The spin-off is expected to occur on April 1, 2024, with Solventum applying for listing on the New York Stock Exchange under the symbol "SOLV."
As part of the spin-off, holders of 3M common stock will receive one share of Solventum common stock for every four shares of 3M common stock held as of the record date, which has been set as March 18, 2024. The distribution is anticipated to be completed prior to the opening of trading on April 1, 2024.
Notably, 3M's board of directors has approved the distribution of 80.1% of the outstanding shares of Solventum to 3M shareholders, with 3M retaining 19.9% of the outstanding shares of Solventum common stock, which will be monetized within five years following the spin-off.
It is important to highlight that 3M shareholders of record as of the record date do not need to take any action to receive the shares of Solventum common stock to which they are entitled. Additionally, shareholders do not need to pay any consideration or surrender or exchange shares of 3M common stock to participate in the distribution.
In terms of trading details, 3M anticipates that "when-issued" trading in Solventum common stock on the NYSE will commence on or about March 26, 2024, under the symbol "SOLV WI." Subsequently, Solventum common stock will begin "regular-way" trading on the NYSE on the distribution date, April 1, 2024, under the symbol "SOLV."
Furthermore, 3M shareholders who hold shares of common stock on the record date of March 18, 2024, and decide to sell any of those shares before the distribution date should consult their stockbroker, bank, or other nominee to understand whether the shares of 3M common stock will be sold with or without entitlement to Solventum common stock distributed pursuant to the distribution.
Today the company's shares have moved 1.6% to a price of $94.06. Check out the company's full 8-K submission here.
