Changes in US stocks | MiniMed (MMED.US) stock swap spin-off started, Medtronic (MDT.US) rebounded the market and rose more than 2.5%

The Zhitong Finance App learned that medical technology giant Medtronic (MDT.US) announced the launch of a share exchange offer and plans to complete a further spin-off of its former diabetes business MiniMed Group (MMED.US) by exchanging shares with existing shareholders. According to the plan, Medtronic will divest at least 80.1% of its MiniMed shares, thereby further reducing its shareholding ratio in the listed company.

Driven by news, Medtronic reversed the market and rose more than 2.5% to $93.29 on Monday.

According to the share exchange plan, Medtronic shareholders can exchange their Medtronic common shares for MiniMed common shares. The exchange price provides a 7% discount compared to the market value of MiniMed shares. However, a maximum of 4.5939 MiniMed shares can be obtained for each Medtronic common share accepted for exchange. If the final share exchange does not hit the maximum exchange rate limit mentioned above, Medtronic anticipates that for every $100 worth of Medtronic common shares submitted by shareholders, they will receive MiniMed shares worth approximately $107.53. In other words, the program provides a price incentive for investors willing to convert their Medtronic holdings into MiniMed shares through a discount of around 7%.

MiniMed was originally Medtronic's diabetes business, mainly engaged in medical equipment business related to diabetes management. The company completed its initial public offering (IPO) in March 2026, but Medtronic retained a controlling interest of approximately 90% after listing.

Currently, Medtronic holds approximately 252.8 million shares of MiniMed common stock, accounting for about 90% of the total number of MiniMed common shares issued. This stock exchange offer is an important step in Medtronic's completion of the MiniMed spin-off plan. According to the company's arrangement, Medtronic plans to divest at least 80.1% of MiniMed's holdings through this transaction.

Unlike direct sales of holdings, share swaps allow Medtronic shareholders to decide for themselves whether to convert their Medtronic shares into MiniMed shares. On the one hand, this helped Medtronic withdraw further from the diabetes business; on the other hand, Medtronic shareholders who are willing to directly invest in MiniMed can also use this to obtain independent shares in the company.

Following the completion of this share swap, the capital relationship between Medtronic and MiniMed will further weaken. For Medtronic, the transaction means that its previous spin-off plan to promote the independent listing of MiniMed has entered a critical stage, and the company will further focus on its core medical technology business; while MiniMed is expected to operate in the open market with a more independent equity structure after breaking away from the parent company's control.