Pfizer had sold off 20% of its ownership in Zoetis during its 2013 IPO. The shares of the world's largest pet and farm animal medical firm was well received and share values have increased by 20% since its IPO.
Now, in a sterling move, Pfizer shareholders would have the option to accumulate Zoetis shares at a discount. The pharmaceutical giant is now selling off its remaining 80.2% stake inthe company through a voluntary stock exchange program with its current shareholders.
Under the program, Pfizer shareholders would be able to purchase Zoetis shares at a 7% discount of the market price of the shares. The final amount of the sale would be determined by the average price of both stocks prior to the June 19th expiration date of the program.
Pfizer is projecting that it would be able to exchange 160.4 million shares of Zoetis. Should the program not completely sell off the shares, Pfizer has vowed to conduct an additional voluntary stock exchange or a special dividend to be able to divest it shareholdings over Zoetis.
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