Saturday 19 October 2019

C&C confirms switch to listing shares in London

Bulmers cider
Bulmers cider
John Mulligan

John Mulligan

BULMERS maker C&C has confirmed it’s to ditch its stock exchange listing in Dublin in favour of a listing in the UK.

Its shares, which soared as much as 4.3pc on the Euronext Dublin yesterday, will stop trading in Ireland on October 7. It will also change its reporting currency to sterling.

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The group said that the majority of its revenues are now derived from the UK, while most of its operations are also there. The departure marks a further loss to the stock market in Dublin. It has seen companies such as Greencore, Grafton Group and DCC delist in recent years.

Chief executive Stephen Glancey had flagged the plan to move the listing at C&C’s annual general meeting in July.

The shares will move to London’s Ftse UK Index Series. The index tracks the share prices of companies on the Ftse-100, the Ftse-250 and the Ftse Small Cap Indices. C&C anticipates being included as a Ftse-250 company from December 23, following a quarterly review.

C&C, which also manufactures other drinks including Tennent’s, Orchard Pig, Five Lamps and Tipperary Water, has a market capitalisation of about €1.28bn, or £1.14bn. To qualify for a Ftse-250 listing, a company must meet various criteria related to factors including free-float and market capitalisation.

Both Grafton Group and Greencore are now members of the index.

C&C said that following the 2018 acquisition of drinks distributor Matthew Clark and Bibendum, there has been a reduction in the proportion of C&C’s revenue and profit earned in Ireland.

C&C made an operating profit of €104.5m in the 12 months to the end of February. Revenue almost tripled to €1.57bn, which included just over €1bn from Matthew Clark and Bibendum.

It added that the company has experienced a “continued evolution” of its shareholder base, with a majority of its shares now held by investors in the UK and North America.

The company said that the potential benefits of C&C being included in the Ftse UK Index Series “is likely over time to increase awareness of C&C among the investor community”.

“We don’t have a lot of European shareholders and the biggest proportion of our shareholders are in the UK,” Mr Glancey told the Irish Independent after the group’s annual general meeting in the summer.

“All the stuff with Brexit impacts them. There’s a bit in this [listing move] of making sure that we’re covering options when Brexit happens. But, equally, the liquidity flow in that market is much deeper. We’ll attract new shareholders.”

C&C had stockpiled €3m worth of cider and between €3m and €4m of fine wines in advance of the previous expected Brexit date last March.

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