Shares in Whitbread (LON:WTB) have climbed marginally higher in London this morning, as the blue-chip company announced that its shareholders had overwhelmingly backed the proposed sale of the group’s Costa Coffee business to Coca-Cola. The company, which also owns Premier Inn, unveiled the deal in August, having previously announced plans to demerge the unit.
As of 10:17 BST, Whitbread’s share price had inched 0.02 percent higher to 4,633.00p. The stock, however, is outperforming the broader market selloff with the benchmark FTSE 100 index having given up 1.74 percent to 7,021.32p, as risk-off sentiment gripped markets around the world. The Premier Inn owner’s shares have added nearly 15 percent to their value over the past year, as compared with a near seven-percent fall in the Footsie.
Investors back Costa Coffee deal
Whitbread announced in a statement today that its resolution to approve the proposed sale of Costa Coffee to The Coca Cola Company was passed by shareholders at the group’s general meeting which was held yesterday. The FTSE 100 group revealed that 99.27 percent of voters had backed the £3.9-billion deal.
The company, which announced the disposal at the end of August, has promised to return ‘a significant majority’ of the proceeds to investors. Whitbread has said that it expects the transaction to complete in the first half of 2019.
Analysts on Whitbread
The 18 analysts offering 12 month price targets for Whitbread for the Financial Times have a median target of 4,900.00p on the shares, with a high estimate of 5,600.00p and a low estimate of 2,000.00p. As of October 5, the consensus forecast amongst 22 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.