Whitbread Coca Cola/ Costa Dividend


#1

Does anybody know when Whitbread will announce how much investors will receive from the Costa sell off?

I’m sure it was meant to be by now but have heard nothing…


(Aris David) #2

They will buy back their own shares with the proceeds. £2B scheme to buy back shares.


#3

I was under the impression that shareholders will be receiving a dividend?


(Aris David) #4

We can still expect 2-3% divvy per annum (hopefully growing dividends).

If shareholder’s are to receive dividends from costa proceeds, then you can deduct that cash from their market value. Share Price will have to adjust massively.


#5

OK I’m a little confused then, what does this mean:

  • A significant majority of net cash proceeds intended to be returned to shareholders

Taken from here


(Alex Suss) #6

Costa is the only good thing about Whitbread.


(Aris David) #7

One way to return value to shareholders is to “buy back” i.e. lower supply of shares in market, increase EPS, the other way is cash dividends which is what you’re asking. Not entirely sure about their wordings though. Maybe worth speaking to their investor relations?


#8

OK will do that

Thanks for the replies/ info :+1:


(Aris David) #9

FYI : - )


#10

OK so the net cash proceeds will be the buybacks?

Edit: thanks for finding this