Procter & Gamble Sets Exchange Ratio for Its Stock in Sale of Beauty Business to Coty
September 28 2016 - 10:08AM
Dow Jones News
By Joshua Jamerson
Procter & Gamble Co. (PG) finalized the terms under which
its shareholders can essentially swap P&G shares for stock in
Coty Inc., as the consumer-products giant moves toward selling Coty
the speciality beauty business it built up a decade ago.
P&G is offering roughly 409.7 million shares of Galleria
Co., the wholly-owned subsidiary it created to facilitate the Coty
transaction, in exchange for P&G shares. The company will
transfer the assets and liabilities of most of its specialty beauty
brands business to Galleria, which will later merge with Coty.
P&G shareholders who tender their shares of P&G common
stock in the exchange offer will receive approximately 3.9033
shares of Galleria, which are equal to shares of Coty class A
common stock, subject to receipt of cash in lieu of fractional
shares, for each share of P&G stock exchanged.
The final exchange ratio details outlined Wednesday are part of
a complicated $13 billion deal P&G struck with Coty in July.
Procter & Gamble is giving up on brands like Wella shampoos,
Clairol hair dye and CoverGirl makeup, segments that distracted
from core areas and hurt its growth. The merger of Galleria and
Coty stock is expected to occur as promptly as practicable after
the exchange offer is complete, P&G has said.
The exchange offer will expire at midnight Eastern time on
Thursday.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
September 28, 2016 09:53 ET (13:53 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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