Procter & Gamble Sets Exchange Ratio for Its Stock in Sale of Beauty Business to Coty

 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)

Procter and Gamble (NYSE:PG)
Historical Stock Chart
From Mar 2024 to Apr 2024