Coty shares soar as investor JAB Holding looks to increase share

Coty shares soar as investor JAB Holding looks to increase share

JAB Holding could be set to take greater control over Coty with the announcement it is looking to increase its stake to 60 percent, news that sent Coty’s shares soaring, according to a report by Bloomberg.

What is seen as a vote of confidence in the Coty management turnaround, the tender offer would increase JAB Holding’s current 40 percent stake in the company and comes as the company is starting to regroup under new CEO Pierre Laubies after a troubled couple of years.

The move to increase its stake to 60 percent will give the JAB Holdings more control, as well as leaving the benefit of private equity – a move that may be useful for future acquisitions or financing.

According to Jeffries analyst Stephanie Wissink in a research note, the JAB deal is thought to be a ‘peace offering’ following a 67 percent pull back in the company’s stock in 2018.

Leave a reply

Your email address will not be published. Required fields are marked *

TOP 50 BRANDS