Johnson & Johnson (JNJ) announced the sale to Elan Corporation plc (ELN) of about 82 million American Depositary Shares or ADS of Elan held by Janssen Pharmaceutical, an affiliate of Johnson & Johnson.
The company said that the sale took place in accordance with the "Dutch Auction" tender offer commenced by Elan on March 11, 2013. The aggregate proceeds are expected to be received on or before April 30, 2013.
The company noted that Janssen will receive $11.25 per ADS which will result in an after-tax gain of approximately $213 million and will be recorded in the second quarter.
The company expects to invest this gain in the business. It is not expected to impact earnings per share guidance for full-year 2013 which was previously announced on April 16, 2013.
On April 16, 2013, Johnson & Johnson confirmed its full year adjusted earnings guidance of $5.35 to $5.45 per share.
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