BUZZ-Tonic maker Fevertree hits near 4-month peak as Molson Coors buys 8.5% stake

Tonic maker Fevertree FEVR.L soars over 20% to 811.5p; highest level since Oct. 1

Coors Light beer maker Molson Coors TAP.N will take 8.5% stake in FEVR for 71 million pounds ($88.45 million) to expand its portfolio of non-alcoholic beverage offerings in the U.S.

FEVR adds that it will return the proceeds to shareholders via a share buyback programme from next month

Molson Coors will acquire the stake by issuing about 10.9 million shares priced at 654.2 pence each

"The deal will improve FEVR's cash-conversion in the US by reducing working capital requirements, boosting the prospect of further capital returns over time, through buybacks or special dividends," says Matthew Webb, analyst at Investec

In 2024, FEVR fell ~36%

($1 = 0.8027 pounds)