BC Partners, the venture capital group that had a 16 per cent stake in the drinks and snack foods company, C&C, together with other co-shareholders have sold 38 million shares for €125 million.
BC Partners, which acquired its shareholding in C&C in 1999 when it led a buyout of Allied Domecq from the Irish company, netted €66 million from the disposal of 20 million shares, reducing its stake to 10 per cent.
Three other shareholders who joined BC Partners consortium to invest in C&C also participated in the share placing.
Teabar Capital Corporation and the Ontario Teachers' Pension Plan Board, sold 8.7 million shares, netting €28.5 million, lowering its shareholding to just over 4 per cent. Capital d'Amerique sold 7 million shares for €23.7 million and now holds a 3.6 per cent stake in C&C. The remaining 2.2 million shares were sold by Europe ventures Pts limited bringing its shareholding down to just over 1 per cent.
Citigroup with Davy Stockbrokers handled the share placing which was to offer up to 50 million C&C shares and ended up selling 38 million.
BC Partners would not comment on the sale that was executed at a time when C&C shares are trading at close to an all-time high and at more than €1 above the price they were first offered to the market in May 2004.
BC Partners and C&C management sold 17 million shares when C&C became a publicly quoted company last year. It was restricted to retaining its remaining stake in the company until November 2004. Its shareholding has been an overhang on the stock and the reduction of its holding will help to improve the shares' liquidity.
C&C shares closed down following the disposal. It ended at €3.23, down 18 cent.
Earlier this week C&C, which produces Bulmers cider, Tayto crisps and Ballygowan mineral water, reported a 39 per cent rise in pretax profits to €93.5 million.
The group said that profits in its main alcohol division are likely to be flat this year due to its investment in its international cider brand, Magners.
Meanwhile, as British drinks group Allied Domecq Plc said it had received a highly conditional bid proposal from a consortium looking to thwart its agreed $14 billion (€11 billion) buyout by France's Pernod Ricard any change of ownership could have a short term impact on C&C.
It could force C&C to put new distribution arrangements in place. C&C's chief executive, Maurice Pratt, has said that the scale of the change depends on who emerges as the eventual owner.
