Coty agrees to sell a roughly 9% stake in Wella to KKR for convertible preferred shares valued at $426. 5 mln
Published
Oct 01 2021 at 10:46 AM GMT
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- Coty Inc shares jumped 2 3% in premarket trade Friday, after the company announced a definitive agreement to sell a roughly 9% stake in beauty and hair care company Wella to private-equity firm KKR & Co for the redemption of half of KKR's remaining convertible preferred shares in Coty.
- The deal will reduce Coty's shareholding in Wella to about 30.6% and reflects a 50% gain in Wella's value since Coty closed the sale of 60% of the company to KKR in December of 2020, Coty said in a statement.
- The preferred shares and accrued dividends are equal to about 47 million common shares, or $426.5 million.
- Once the deal closes, KKR will own about 45 million Coty Class A shares, equal to a5 2% stake.
- The deal will simplify Coty's capital structure and lead to annual dividend cash savings of about $26 million, or $52 million when combined with KKR's secondary share offering that closed in September.
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- Published Oct 1, 2021 10:46 AM GMT