Keurig Dr Pepper falls after $2.5 bln secondary offering priced

Bebida Beverage

01/03/2024 11:27

** Shares of Keurig Dr Pepper  KDP.O  down 2.9% at $29.04 on
light premarket volume after overnight secondary offering priced
    ** Beverage firm late Thurs announced 87 mln shares sold by
JAB Holding Co in offering priced at $29.10, 2.7% discount to
last sale, with Morgan Stanley as bookrunner
    ** KDP to repurchase 35 mln shares in the offering under its
$4 bln buyback program, of which approx $1.8 bln will remain
post-offering
    ** If full-overallotment is exercised, Luxembourg-based JAB
would sell 100 mln shares, resulting in 21% ownership of KDP's
outstanding shares
    ** Prior to offering, JAB held ~383.4 mln shares for ~22%
stake in KDP
    ** JAB CEO Joachim Creus said in statement late Thurs KDP
will remain one of its "most important investments" and it would
"continue to be a long-term anchor shareholder in KDP, at or
above the 20% ownership level"
    ** KDP's shares fell ~4% on Feb 22 after Q4 sales miss as
higher product prices dented demand
    ** Stock has lost 10% YTD through Thurs close for $41.5 bln
market value

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))