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McKesson Launches Split-off Of Investment In Change Healthcare - Quick Facts

McKesson Corp. (MCK) announced the commencement of an exchange offer for the split-off of its subsidiary, PF2 SpinCo, Inc., which will hold all of the company's interest in Change Healthcare. Immediately following the completion of the exchange offer, SpinCo will merge with and into Change, following which Change will continue as the surviving company.

In the merger, each SpinCo common share will be converted into one share of Change. Change will issue 175,995,192 common shares in the merger. Upon completion, approximately 51 percent of the outstanding shares of Change common stock are expected to be held by pre-merger holders of McKesson common stock, and approximately 49 percent of the outstanding shares of Change common stock are expected to be held by pre-merger holders of Change common stock.

Brian Tyler, CEO, McKesson, said: "We expect this exchange offer will continue to deliver value to McKesson shareholders by reducing our number of outstanding shares in a tax-efficient manner. This transaction better positions McKesson to focus on our core business."

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