The spin-off of
The WhiteWave Foods Co
) from its parent company,
Dean Foods Company
), reached the final stages as the former filed a secondary
offering of its Class A shares with the U.S. Sec authorities on
As a part of the offering, 29.9 million of WhiteWave's Class A
shares that are currently held by Dean Foods will be issued to
the public, diluting the latter's stake in the former.
Additionally, the offering provides the underwriters an option to
buy the remaining 4.5 million Class A shares held by Dean Foods
in 30 days.
Prior to the offering, Dean Foods will exchange some of
WhiteWave's Class A shares with certain underwriters, to relieve
of its indebtedness. Following the completion of the offering,
the underwriters will be allowed to sell these shares.
The debt-for-equity offering has been formulated in a manner
that makes it eligible for a tax-free transaction. After
completion of this transaction, Dean Foods will not have any
stake in WhiteWave.
WhiteWave has appointed J.P. Morgan Securities LLC, BofA
Merrill Lynch, Credit Suisse Securities LLC, SunTrust Robinson
Humphrey and Wells Fargo Securities to be joint managers for the
offering. Moreover, Credit Agricole CIB and Rabo Securities will
be the co-managers.
Formerly, WhiteWave was a wholly owned subsidiary of Dean
Foods. In Oct 2012, in order to relieve debts, Dean Foods decided
to separate the Silk soy products and Horizon Organic dairy
products subsidiary through an Initial Public Offering (IPO) and
consequently diluted its 20% stake in WhiteWave.
Since then, this Zacks Rank #3 (Hold) company has been
continuously reducing its stake in WhiteWave. Dean Foods, which
Lifeway Foods Inc
Feihe International, Inc
) distributed 47,686,000 Class A shares and 67,914,000 Class B
shares of WhiteWave on a pro rata basis last month.
We believe that these strategic moves will boost the company's
shareholder value and offer growth opportunities for both Dean
Foods and WhiteWave.
FEIHE INTL INC (ADY): Free Stock Analysis
DEAN FOODS CO (DF): Free Stock Analysis
LIFEWAY FOODS (LWAY): Free Stock Analysis
WHITEWAVE FOODS (WWAV): Free Stock Analysis
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