BUZZ-Keurig Dr Pepper dips as top investor JAB to carve stake

Reuters
02-27
BUZZ-Keurig Dr Pepper dips as top investor JAB to carve stake

** Keurig Dr Pepper's KDP.O shares down 2.2% at $33 in post-market trade after secondary offering news

** Burlington, Massachusetts-based beverage co announces top investor JAB Holding Co to offload 73 mln shares with JP Morgan as bookrunner

** Sale would reduce Netherlands--based JAB's stake from ~16% to 10.7%, or ~145 mln shares

** KDP has ~1.36 bln shares outstanding for ~$45.8 bln market cap

** Given JAB's reduced ownership, co says Joachim Creus, Frank Engelen and Olivier Goudet, the three members of its board who are affiliated with JAB, notified KDP they will resign from the board upon offering's completion

** KDP's shares on Weds closed down 3.4% at $33.74. YTD, stock up 5% vs 6.1% advance in S&P 500 Consumer Staples sector .SPLRCS and 1.3% gain for S&P 500 .SPX

** Early Tues, KDP posted Q4 profit beat and forecasted 2025 profit above consensus, helped by strong demand for its higher-priced sodas and sports drinks

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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