Keurig Dr Pepper's Largest Holder, JAB Increases Public Float by 10%

JAB Holdings will convert a portion of its stake into 143 million shares of Keurig

JAB Holdings, Keurig Dr. Pepper's  (KDP) - Get Report largest shareholder, plans to convert a portion of its stake in the company into 143 million publicly tradeable shares, according to a release Thursday. 

Maple Holdings, a JAB subsidiary, will offer the shares, representing 10.1% of the Keurig's outstanding stock, and will be subject to a lockup period. After the sale, JAB and Maple will still collectively own 52.6% of Keurig Dr Pepper.

Mondelez International  (MDLZ) - Get Report will continue to own 13.1% of the company and the public float will increase 10% to 34.3%. 

Last month, Keurig priced a $40 million secondary stock offering at $27.25 a share, bolstering its liquidity amid the economic recession spurred by the coronavirus pandemic.

Keurig shares were at last check up 1.7% near $29. Year to date, the shares are down about 1% after they rebounded from a sharp mid-March decline. 

JAB, which also owns the Pret-a-Manger and Panera Bread chains, maintained a majority stake in coffee giant JDE Peet's after that company became Europe's biggest initial public offering of the year in late May. JDE Peet's raised €2.3 billion ($2.5 billion) in Amsterdam in less than two weeks.

JDE Peet’s sold 22.2 million new shares, raising €700 million in gross proceeds. Shareholders Mondelez and Acorn Holdings, a company owned by JAB and other investors, sold existing shares for about €1.55 billion.

JDE Peet's said it generated total revenue of 6.9 billion euros in 2019, 79% of which was derived from 44 markets where it held a number one or number two market position in consumer packaged goods or out-of-home sales channels.

Its out-of-home coffee business, serving hotels and offices, makes up about 21% of total revenue.