By Colin Kellaher
Keurig Dr Pepper Inc. on Tuesday said European investment fund JAB Holding and snacks maker Mondelez International Inc., its two largest shareholders, are reducing their stakes through a series of stock sales and distributions.
The Burlington, Mass., beverage company said an offering of 60 million shares being sold by Mondelez and JAB's majority-owned Maple Holdings B.V. unit was priced at $28.45 apiece, below Monday's closing price of $29.45.
Mondelez, which previously held about 158.2 million shares, or a roughly 11.2% stake in Keurig, is selling 40 million shares in the offering, which will drop its stake to 8.4%.
The 2018 merger of Keurig Green Mountain and Dr Pepper Snapple Group left Mondelez with a 14% stake in the combined company.
Keurig said Maple is selling 20 million shares in the offering for the benefit of its minority partners and also will convert their minority interests into 119 million Keurig shares that it will distribute to the minority holders.
The minority interests in Maple are held by more than 100 investors, comprised of mostly sovereign wealth funds, university endowments and family offices, who have invested alongside JAB over the last five years as part of its beverages strategy.
JAB and Maple, which currently own about 44.1% of Keurig, will remain the company's largest shareholder, with a roughly 34% stake.
Keurig said the transactions will boost its public float to about 58%, compared with roughly 13% after the 2018 merger.
Shares of Keurig were recently down 3.2% to $28.50.
Write to Colin Kellaher at email@example.com
(END) Dow Jones Newswires