Coty announced that it has entered into a binding letter of intent to sell a portion of its Wella stake to investment firm, IGF Wealth Management. Coty will sell a 3.6% stake in Wella for $150M, subject to the completion of due diligence, reflecting a 4% premium to the book value of Wella as of March 31. Following this transaction, which is expected to close in the next two months subject to certain closing conditions, Coty will retain a 22.3% stake in Wella with an implied valuation of approximately $900M. The announced transaction advances the company’s objectives to actively deleverage, including reaching its target of driving leverage towards 3x exiting CY23.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on COTY:
- Kim Kardashian Looking to Buyback SKKN Stake from Coty
- Kim Kardashian in talks to buy back stake in beauty company from Coty, WSJ says
- Guidance Lift and Return of the Consumer Ecosystem to Boost Coty Stock (NYSE:COTY)
- Coty price target raised to $13 from $12 at JPMorgan
- COTY Stock (NYSE:COTY) Rises on Q4 Guidance Lift