By Fineline Cube 
Medtronic plc (NYSE: MDT), the US-headquartered medical technology company, has unveiled plans to spin off its Diabetes business into an independent publicly traded entity. This strategic move aligns with the company’s ongoing efforts to streamline its portfolio and prioritize high-margin growth sectors.
Spinoff Details
The separation, targeted for completion within 18 months, is expected to involve an initial public offering (IPO) followed by a tax-free split-off to shareholders. This transaction aims to unlock shareholder value by creating a pure-play Diabetes company with an aligned investor base. It is projected to enhance Medtronic’s adjusted gross margin by approximately 50 basis points, improve adjusted operating margins by approximately 100 basis points, and deliver immediate accretion to adjusted earnings per share (EPS).
Dividend Policy
Medtronic emphasized that its dividend policy will remain unchanged post-transaction, ensuring continuity for investors.-Fineline Info & Tech