Intends To Purchase Up To $3.1B Of Its Common Stock Through Both A Modified "Dutch Auction" Tender Offer For Up To $2B Of Its Common Stock And A Separate Share Purchase Agreement With The Coca‑Cola Company
Portfolio Pulse from Benzinga Newsdesk
The Company plans to repurchase up to $3.1 billion of its Common Stock, including a modified "Dutch auction" tender offer for up to $2 billion and a separate share purchase agreement with The Coca-Cola Company (COKE). The tender offer's price range is $850 to $925 per share. Under the agreement, COKE will sell shares back to the Company, ensuring it retains a 21.5% ownership post-repurchase. The repurchase is funded through new debt and cash, aiming to optimize the balance sheet while maintaining dividends and a solid credit rating.
May 06, 2024 | 8:42 pm
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Coca-Cola Company (COKE) enters a share purchase agreement with The Company, selling shares to maintain a 21.5% ownership post-repurchase. The deal is contingent on the tender offer's purchase price being no less than $925 per share.
The agreement between COKE and The Company directly involves COKE's financial interests and stock ownership, likely leading to a positive short-term impact on COKE's stock price. The specific condition of a minimum $925 per share price for the deal to proceed indicates a potentially higher valuation for COKE's shares, supporting a positive outlook.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90