JAB Makes Tender Offer for Additional Coty Shares

Global investment firm JAB Holdings has announced that it will commence a tender offer pursuant to acquire up to 150 million additional shares of Coty Inc. Class A common stock at a price of $11.65 per share in cash. The offer is subject to, among other things, approval of Coty’s independent directors.

According to JAB, the offer represents a premium of approximately 38% to the 90-day volume-weighted average share price as of yesterday, a premium of approximately 51% to the 30-day volume-weighted average share price as of yesterday, and approximately a 21% premium to yesterday’s closing share price.

In a letter sent today to Coty’s board of directors, Peter Harf, chairman of JAB wrote that JAB has invested in Coty “for almost three decades and expect to remain so. 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.”

If all 150 million shares of Common Stock are purchased in the Offer, JAB would own, together with its current shareholdings, an aggregate of 450,908,041 shares of Common Stock, representing approximately 60% of the issued and outstanding shares of Common Stock. If 50 million shares of Common Stock are purchased in the offer, which represents the number of shares of Common Stock necessary to satisfy the Minimum Tender Condition, JAB would own an aggregate of 350,908,041 shares of Common Stock, representing approximately 47% of the issued and outstanding shares of Common Stock.