Note: Because of the actuality of the topic I will post an unfinished article. I apologise for that. The new shares will start trading today.
Coca-Cola Enterprises, Inc., Coca-Cola Iberian Partners SA and Coca-Cola Erfrischungsgetränke AG, a wholly owned subsidiary of The Coca-Cola Company, have agreed to combine their businesses into a new company to be called Coca-Cola European Partners Plc (link homepage). The shares will start trading today (CCEP on Euronext).
ISIN GB00BDCPN049 (according to Euronext)
- Combined company pro forma 2015 expected annual net
- revenues of $12.6 billion and EBITDA of $2.1 billion (before synergies)
CCEP will be headquartered and incorporated in the United Kingdom and publicly traded on the Euronext Amsterdam, NYSE, and Madrid Stock Exchange
Expected to realize annual run-rate pre-tax savings of approximately $350 to $375 million within 3 years of closing
Transaction financed with ~$3.3 billion funded by the new company using newly issued debt
Expected to have 2015 pro forma net debt to EBITDA ratio of ~3.5x; given anticipated cash flows, expect to de-lever to ~2.5x by year-end 2017
Expected dividend payout of 30% to 40% of net income over time
The Prospectus can be found on https://www.securitiesinfo.com/
Edit3: A Fact sheet from CCE (link)
The new European Partners Revenues by countries (from their Presentation):
This is a year 2024 Bond of them which is traded at 1,22% yield (link bond consorsbank)
According to euronext there will be listed 482,255,739 shares –
I’m not sure if that is equal with shares outstanding (link)
Edit 1: From the Prospectus: The exact number of Orange Shares to be issued will bedetermined based on the closing price of White shares on theNYSE on 27 May 2016. Based on the closing price of Whiteshares on the NYSE as at 20 May 2016 (being the latestpracticable date before the publication of this prospectus), thenumber of Orange Shares expected to be in issue, fully paid, as atAdmission, will be 482,255,739.
I played arround with some numbers (recently updated at 13:16 CET!):
I assumed Synergies of 0,35 bn (like they told), net debt of $ 7,35 bn, an interest rate of 1,22% (maybe to low) and a tax rate of 28% (like they told). I calculated a EPS of 3,9 USD.
From the Prospectus: Adjusted EBITDA and Adjusted Operating Income for 2015 were lower than the Unaudited Orange Financial Projections by US$ 267 million, US$ 28 million and US$ 37 million, respectively.
CCE shareowners to receive one share of CCEP and a cash payment of $14.50 per share of CCEP.COCO-COLA ENTERPRISES INC trades at around 51.50 USD so CCEP should be at about $ 66.00 (maybe I am missing something about the record date here).
I am curious at what price the Shares of the new Coca-Cola European Partners Plc will start to trade at (Bid is at 50 the ask is at 35) (CCEP on Euronext)
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