JAB Holding Co. sells a block of Keurig Dr Pepper (NASDAQ: KDP) shares at a public price of $29.10 per share, in an effort to raise approximately $2.5 billion.
On Thursday, Keurig Dr Pepper (KDP) reported that a the JAB Holding unit planned to sell a total of 86.96 million shares via a secondary offering.
The investment firm, backed by the billionaire Reimann family, also granted the underwriter an option to purchase up to an additional 13,043,478 shares for a period of 30 days following the offering date.
The beverage company plans to repurchase a total of 35 million shares in this offering at the price per share to be paid by the underwriter in the offering. The repurchase is being made pursuant to the previously announced $4 billion repurchase authorization, of which approximately $1.8 billion will remain outstanding following the offering.
Following the completion of the offering, assuming full exercise of the underwriter’s option to purchase additional shares, JAB will beneficially own approximately 21% of KDP’s outstanding common stock, giving effect to the repurchase, bringing KDP’s public float at around 79%.
Under the terms of the transaction, the remaining shares owned by JAB will be subject to a 180-day lock-up agreement with the underwriter.
Keurig Dr Pepper (KDP) stock is down 2.71% pre-market