Kimberly-Clark Updates On Health Unit Spin-Off, Raises Share Buyback Target

(RTTNews) - Kimberly-Clark Corporation (KMB), maker of Kleenex tissues, announced the details of the tax-free spin-off of its Halyard Health. The company also raised its annual share repurchase target as it expects a one-time cash payment from the unit before completion of the spin-off.

As part of the spin-off, Kimberly-Clark shareholders will get one Halyard Health share for every eight shares of Kimberly-Clark held at the close of trading on October 23, which is the record date for the spin-off.

The effective date of the spin-off is October 31.

Halyard Health has applied to trade in NYSE under the symbol "HYH" and will begin "regular way" trading on November 3. Kimberly-Clark expects that a "when-issued" public trading market for Halyard Health's common stock will begin on the NYSE on or about October 21.

The company increased its annual share repurchase target to $2 billion, from its previous goal of $1.3 billion to $1.5 billion, in anticipation of the expected proceeds from the spin-off.

Through the distribution date of October 21, the investors can choose to trade Kimberly-Clark shares with or without rights for Halyard shares.