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Feb. 12, 2019, 7:30 a.m. EST

Coty shares soar 19% after JAB Holding announces upcoming tender offer

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By Tonya Garcia

Coty Inc. /zigman2/quotes/208645074/composite COTY +1.27% shares soared 19.4% in Tuesday premarket trading after JAB Holding Co., a company that has invested in brands like Peet's Coffee & Tea, Panera Bread, and Caribou Coffee Co., announced that it would make a tender offer for 150 million shares of Class A common stock at $11.65 per share in cash. Shares closed Monday at $9.66. JAB says the offer price is about a 38% premium to the 90-day volume-weighted average share price as of Monday. "We believe that the company has the potential to address its challenges and prosper over the long term, and that the company's recent management changes are an important first step in addressing the company's recent performance," JAB wrote in a letter to the Coty board. Coty's new executives discussed its recent supply chain issues, and its efforts to resolve them, during its fiscal second-quarter earnings. If JAB's offer is accepted, the company will own about 60% of Coty shares. If the minimum 50 million shares are purchased, JAB would own about 47% of outstanding shares. Coty stock has plummeted more than 52% over the past year while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.06% is up 2% for the period.

/zigman2/quotes/208645074/composite
US : U.S.: NYSE
$ 4.00
+0.05 +1.27%
Volume: 5.42M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$3.05 billion
Rev. per Employee
$453,290
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/zigman2/quotes/210599714/realtime
US : S&P US
3,351.28
+2.12 +0.06%
Volume: 2.28B
Aug. 7, 2020 5:10p
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