Bausch Health (NYSE:BHC) announced today that it transferred shares of its Bausch + Lomb to an existing subsidiary.
The Laval, Quebec–based company transferred common shares in an amount equal to approximately 38.6% of the issued and outstanding shares of Bausch + Lomb to an existing, wholly-owned, unrestricted subsidiary of the company.
According to a news release, common shares amounting to approximately 50.1% of Bausch + Lomb continue to be held by a wholly-owned, restricted subsidiary as the optical and ophthalmic device maker itself remains a restricted subsidiary of Bausch Health.
Through its subsidiaries, the company continues to hold the same number of shares as it did prior to the internal transfer, which comprises approximately 88.7% of the issued and outstanding shares of the subsidiary.
According to the company, the internal transfer of shares is consistent with its commitment to the separation of Bausch + Lomb and offers “strategic flexibility” as the company evaluates all relevant factors and considerations relating to the separation.
The separation is contingent on the expiry of customary lockups related to Bausch + Lomb’s IPO, the achievement of targeted debt leverage ratios and the receipt of applicable shareholder and other necessary approvals. The company said it engaged Houlihan Lokey and White & Case LLP as financial and legal advisors, respectively, to assist in evaluating potential strategic alternatives.