Dallas-based leading food and beverage company,
Dean Foods Company
) recently announced the completion of its previously stated
allocation of a portion of its remaining stake in
The WhiteWave Foods Co
) to its shareholders.
Dean Foods distributed 47,686,000 Class A shares and
67,914,000 Class B shares of WhiteWave on a pro rata basis on May
23 to shareholders of record as of May 17. Consequently,
the company now has a minority stake in WhiteWave. Dean
Foods, which currently carries a Zacks Rank #3 (Hold), appointed
JPMorgan Chase & Company
) as the financial advisor for this transaction, which had deemed
it eligible as a tax-free distribution.
On the basis of Dean Foods' outstanding number of shares as of
May 17, its shareholders got 0.25544448 and 0.36380189 shares of
WhiteWave's Class A and Class B, respectively, for every share of
the parent company held by them.
However, Dean Foods has not distributed the fractional shares
of WhiteWave and has decided to sell them in the open market. The
net proceeds from this transaction will later be distributed to
shareholders of the company who were eligible for WhiteWave
Dean Foods, which competes with
Lifeway Foods Inc
), continues to retain the remaining 34,400,000 Class A shares or
approximately 19.9% stake in WhiteWave, which will likely be
distributed within the next 18 months in one or more tax-free
Formerly, WhiteWave was a wholly-owned subsidiary of Dean
Foods. Last year, however, the latter opted for an Initial Public
Offering (IPO) to separate the maker of Silk soy products and
Horizon Organic dairy products. Following the completion of the
IPO, Dean Foods held 80% controlling interest in WhiteWave.
We believe that these strategic moves will boost the company's
shareholder value and present growth opportunities for both Dean
Foods and WhiteWave.
DEAN FOODS CO (DF): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
LIFEWAY FOODS (LWAY): Free Stock Analysis
WHITEWAVE FOODS (WWAV): Free Stock Analysis
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