Medtronic launches MiniMed share-exchange offer

Medtronic ($MDT) launched an exchange offer to split off at least 80.1% of MiniMed ($MMED), its former diabetes business. Investors can voluntarily exchange Medtronic shares for MiniMed stock at a 7% discount, subject to a cap of 4.5939 MiniMed shares for each accepted Medtronic share. Without that cap applying, the indicated value is approximately $107.53 of MiniMed stock for every $100 tendered.

The final exchange ratio will depend on market prices near expiration, currently scheduled for October 9. MiniMed previously completed an IPO, leaving Medtronic with approximately 90% ownership. The offer advances the separation but has not yet completed; participation and other conditions still apply. Medtronic intends to concentrate capital on cardiovascular, neuroscience and surgical businesses.

Sources:

• Medtronic — exchange-offer terms