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By Adam Clark
Whitbread PLC (WTB.LN) said Thursday that its shareholders voted in favor of selling the Costa Coffee chain to Coca-Cola Co. (KO) for 3.9 billion pounds ($5.1 billion).
About 99.3% of votes were cast in favor of the disposal at a general meeting held on Wednesday.
The FTSE 100 company, which also owns the Premier Inn Hotel brand, had said previously it intends to return the majority of the proceeds to its shareholders.
The sale is the biggest brand acquisition in the history of Coca-Cola, and marks the soda giant's entry into the competitive world of coffee. Costa has nearly 4,000 stores in 32 countries, including a growing presence in China.
The deal is a victory for hedge funds Sachem Head and Elliott Management Corp., which both pushed Whitbread to spin off Costa. Sources familiar with the situation previously told Dow Jones that Elliott now plans to push Whitbread to consider strategic options for Premier Inn.
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(END) Dow Jones Newswires
October 11, 2018 03:19 ET (07:19 GMT)
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