FRANCE: Pernod Ricard rights issue secures financing until 2013
Pernod said yesterday (15 April) that it would launch the rights issue, which is intended to raise capital in order for the company to pay down debt, largely accrued as a result of its EUR5.3bn purchase of Sweden's Vin & Sprit last year.
The rights issue is set to create 38.8m new shares, representing three new shares for 17 existing shares, at a price of EUR26.70 each.
Despite potentially diluting earnings, the move was viewed largely positively by analysts.
Trevor Stirling, of Sanford Bernstein, said that the rights issue, if successful, would be likely to help satisfy Pernod's refinancing needs until July 2013. Without the issue, Pernod could have faced a financing gap in 2011, he said.
Pernod Ricard, which also yesterday reported a 12% drop in like-for-like sales in its fiscal third quarter, has seen shares rise by nearly 5% today, to EUR42.48 per share.
The news this week that Suntory has launched a binding offer to acquire Orangina Schweppes is another sign of the growing international aspirations of Japan's drinks groups. Alongside the mooted merge...
Chivas Brothers, the Scotch whisky and gin business of Pernod Ricard, has promoted Simon Burley to the position of brand director for Beefeater and Plymouth Gin in the UK....
New Zealand Winegrowers has for the first time set a limit on the amount of wine grapes to be harvested, as the trade body attempts to prevent oversupply from cheapening the country's wines on interna...
The top ten stories published on just-drinks this week:...
Pernod Ricard has launched a new campaign for its Campo Viejo wine brand in the UK, adding weight to company claims that the Spanish wine brand is not for sale....
Pernod Ricard Travel Retail is to launch its limited edition vodka Absolut Rock in UK airports....
Pernod Ricard's GH Mumm Champagne is to be the official partner and sponsor of an event for the London Restaurant Festival next month....
Pernod Ricard has transferred production of Italian wine brand Canei to the grower's association in the the region....
- Bacardi Seeks Own History at Bombay Sapphire Home
- NPD: The Craft Cocktail Revolution
- No Home Comfort for TWE as Bids Collapse
- Interview - WoSA chief executive
- Private-equity bids "over" - TWE head
- Suntory Holdings to split beer, spirits division
- Diageo's Smirnoff Sours
- Anheuser-Busch InBev appoints new AmBev CEO
- Treasury Wine Estates pulls plug on takeover talks
- 'Carlsberg suspends production at Russian brewery'