BASEL, Switzerland—Novartis (NYSE: NVS) shareholders last week followed the board of directors’ recommendation and approved the proposed 100 percent spin-off of the Alcon eyecare division at the annual general meeting, the company announced. The proposal to carry out a spin-off of Alcon received 99.8 percent of the votes cast by shareholders, according to Novartis. In addition to the shareholders’ approval, completion of the spin-off remains subject to certain conditions, such as no material adverse events and receipt of necessary authorizations, the announcement noted. The spin-off is expected to be completed in the second quarter.

The spin-off will be implemented through the distribution of a dividend-in-kind of new Alcon shares to Novartis shareholders and ADR (American Depositary Receipt) holders. It is expected to be tax neutral on a U.S. and Swiss income tax basis, according to Novartis. Shareholders will receive the following:

For every 5 Novartis shares: 1 Alcon Share
For every 5 Novartis ADRs: 1 Alcon Share

The Novartis shareholder brochure for the Alcon spin-off can be accessed here.