3M Sets April 1 As The Date To Spin-off Its Healthcare Business; Says Will Hold 19.9% Minority Stake In Solventum; Expect To Monetize In First 5 Operational Years Of The Company
Portfolio Pulse from Benzinga Newsdesk
3M announced it will spin off its healthcare business on April 1, retaining a 19.9% minority stake in the new entity, Solventum. The company plans to monetize its stake within the first five operational years of Solventum.
February 21, 2024 | 2:39 pm
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3M is spinning off its healthcare business, retaining a 19.9% stake in the new company, Solventum, with plans to monetize this stake within the first five years.
The spin-off of 3M's healthcare business into Solventum and the retention of a 19.9% stake indicates a strategic move to focus on core operations while still benefiting from the healthcare sector's growth. This could be seen positively by investors as it allows 3M to streamline its operations and potentially unlock value from the healthcare business. The plan to monetize the stake within five years provides a clear timeline for realizing returns from this strategic decision.
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