On Monday, Johnson & Johnson announced the commencement of an exchange offer, enabling its stockholders to choose shares of Kenvue (NYSE: KVUE), the company’s recently listed consumer health unit.

J&J (NYSE: JNJ), which currently holds 89.6% ownership of Kenvue, announced its plan to separate and distribute at least 80.1% of the consumer health company’s shares as a part of the offering.

The offering helps J&J get closer to its plan of separating the unit so that they can concentrate more on their medical devices and pharmaceuticals businesses.

The exchange will allow J&J shareholders to exchange their shares for those of Kenvue at a 7% discount, subject to conditions.

Kenvue, which started trading on the New York Stock Exchange in May, is currently valued at around $46 billion.

The offering comes days after J&J and Kenvue both forecast strong profit for this year.

‍Goldman Sachs and J.P. Morgan Securities are serving as dealer managers for the offering, J&J said.

J&J shares rose about 1% in premarket trading.