Coty Inc.'s (COTY) stock jumps 15% after JAB Holding announces an upcoming tender offer

NYSE: COTY | Coty Inc. Class A Common Stock News, Ratings, and Charts

COTY – Shares closed Monday at $9.66. JAB says the offer price is about a 38% premium to the 90-day volume-weighted average share price as of Monday.


Coty Inc. COTY, +14.34% shares soared 19.4% in Tuesday premarket trading after JAB Holding Co., a company that has invested in brands like Peet’s Coffee & Tea, Panera Bread, and Caribou Coffee Co., announced that it would make a tender offer for 150 million shares of Class A common stock at $11.65 per share in cash. Shares closed Monday at $9.66. JAB says the offer price is about a 38% premium to the 90-day volume-weighted average share price as of Monday. “We believe that the company has the potential to address its challenges and prosper over the long term, and that the company’s recent management changes are an important first step in addressing the company’s recent performance,” JAB wrote in a letter to the Coty board. Coty’s new executives discussed its recent supply chain issues, and its efforts to resolve them, during its fiscal second-quarter earnings. If JAB’s offer is accepted, the company will own about 60% of Coty shares. If the minimum 50 million shares are purchased, JAB would own about 47% of outstanding shares. Coty stock has plummeted more than 52% over the past year while the S&P 500 index SPX, +1.14% is up 2% for the period.


Coty Inc. shares were trading at $11.01 per share on Tuesday morning, up $1.35 (+13.98%). Year-to-date, COTY has gained 67.84%, versus a 9.62% rise in the benchmark S&P 500 index during the same period.

COTY currently has a StockNews.com POWR Rating of D (Sell), and is ranked #35 of 66 stocks in the Fashion & Luxury category.


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COTY at a Glance

COTY Current POWR Rating™
Overall POWR Rating™
COTY Current Price $11.04 0.36%
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COTY Price Reaction

The day of this event (Feb. 12, 2019)
COTY Closing Price$10.87 12.53%
COTY Volume48,856,600
512.21% from avg
Leading up to this event
COTY 1-mo returnN/A%
After this event
COTY 1-day return13.52%
COTY 3-day return12.50%

COTY Price Chart


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