Lavazza sells portion of its Keurig Green Mountain shares for $50 million

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Lavazza sells portion of its Keurig Green Mountain shares for $50 million

Mon, 01/26/2015 - 4:19pm -- tim

Vermont Business Magazine On January 23, 2015, Italian coffee company and Keurig Green Mountain investor Lavazza sold an aggregate of 378,371 shares of Common Stock ($50,299,273), as a result of which Lavazza currently owns approximately 7.8 percent of the outstanding Common Stock, as described below, worth about $1.7 billion. In a SEC filing statement, Lavazza said it intends to continue to review market conditions for shares of Keurig Common Stock and may from time to time sell additional shares of Keurig Common Stock. Keurig Green Mountain is based in Waterbury, Vermont.

Lavazza said it is currently engaged in important strategic transactions unrelated to Keurig for which it will have significant cash requirements. Thus, while Lavazza said it continues to believe in the merits of an investment in Common Stock, it now believes that it would be more appropriate for Lavazza to deploy available capital to its other ongoing strategic transactions and initiatives and, accordingly, on January 23, 2015, Lavazza determined to sell a portion of its holdings of Keurig Common Stock.

Lavazza said intends to use the proceeds of the sale of shares of Common Stock, in part, to fund its cash obligations in respect of such other transactions. The exact number of shares of Common Stock that Lavazza will sell has not been determined, and will depend upon, among other things, market conditions generally and for the shares of Common Stock, as well as the amount and timing of its requirements for cash in respect of such other transactions. Lavazza expects, however, that it will sell at least enough shares of Common Stock so that it will cease to own more than 5 percent of the outstanding Common Stock, the public reporting threshold.

The sale of at least that many shares would be worth about $600 million in today's terms. Keurig has a market cap of $21.3 billion, which is the value of all outstanding common shares.

Shares of Keurig made a modest spike on January 23 to $136 (SEE HERE) before falling back to about $130 over the weekend. Shares are trading at just over $131 Monday with a 52-week range of $74.44 - $158.87.

Source: SEC. 1.23.2015