Elanco Animal Health To File Registration Statement On Lilly Divestiture

(RTTNews) - Elanco Animal Health Inc. (ELAN), formerly the animal health business of Eli Lilly and Company, said it intends to file a Form S-4 Registration Statement with the Securities and Exchange Commission in connection with Lilly's proposed exchange offer whereby Lilly shareholders can exchange shares of Lilly common stock for shares of Elanco common stock owned by Lilly.

The exchange offer is anticipated to be tax-free for participating Lilly shareholders in the United States, except with respect to cash received in lieu of fractional shares.

Elanco Animal noted that the exchange offer is voluntary for Lilly shareholders. No action is necessary for Lilly shareholders that choose not to participate, who retain their existing shares.

Earlier today, Eli Lilly and Company announced it will initiate an exchange offer today to divest its remaining interest in Elanco Animal Health.

Elanco completed its initial public offering in September 2018, with Lilly retaining an 80.2 percent ownership interest in Elanco.

The exchange offer is designed to permit Lilly shareholders to exchange their shares of Lilly common stock for shares of Elanco common stock at a 7 percent discount, subject to an upper limit of 4.5262 shares of Elanco common stock per share of Lilly common stock. If the upper limit is not in effect, for each $100 of shares of Lilly common stock accepted in the exchange offer, tendering shareholders would receive approximately $107.53 of Elanco common stock.