Novartis to complete Alcon eye care separation in April

In June 2018, Novartis announced it would separate the eye care business, Alcon into a separately-traded standalone company so both businesses could focus on their respective growth strategies. For this to happen, certain criteria had to be met:

Alcon has obtained approval, subject to customary conditions, for listing on SIX Swiss Exchange and New York Stock Exchange. Alcon will also be included in both the Swiss Market Index (SMI(R)) and Swiss Performance Index (SPI(R)) from the first day of trading, as recently announced by the SIX.

Alcon will seek effectiveness of the Alcon Inc. Form 20-F registration statement from the US Securities and Exchange Commission (SEC).

Alcon has secured debt financing of USD 3.5 billion through a group of banks.

The Alcon credit rating will be investment grade following the spin-off.

Now on 9th April 2019 the planned spin-off will be completed through distribution of dividend in kind to Novartis shareholders and ADR holders. Each Novartis shareholder will secure one Alcon share for every five Novartis shares / ADRs they hold at close of business on 8th April.