German conglomerate JAB details plan to boost its stake in Coty to 60%
JAB, the private holding company of Germany's Reimann family, offers to buy out some of the cosmetics maker’s minority shareholders
Bengaluru — German conglomerate JAB Holding laid out plans on Tuesday to increase its stake in Coty to 60%, offering to buy out some of the cosmetics maker's minority shareholders after a 50% slump in its market value in the past year. JAB, already Coty's largest shareholder with a 40% stake, said it would launch a partial tender offer to buy up to 150 million shares for $11.65 each in cash, just months after Coty appointed a CEO and chair who were associated with JAB. The offer represents a premium of 20.6%, based on the stock's closing price on Monday, pulling shares about 18% higher to $11.40 in trading before the opening bell. Taking a majority stake would give JAB a firmer grip on a company that has been grappling with supply chain issues ranging from hurricanes and trucker strikes, as well as problems integrating brands it bought from Procter & Gamble three years ago. "We understand that not all investors may share our long-term approach and we expect that shareholders will va...
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