First, Constellation would be able to acquire what it doesn’t already own of Canopy for a reasonably inexpensive price. Zuanic suggests that acquiring what it doesn’t already own of Canopy at a 15% premium would only amount to a little over $5 billion.
Does constellation brands own canopy growth?
The beer and wine giant later raised its stake in Canopy Growth to 38 percent in August 2018 after it announced an investment of C$5 billion, or $4 billion.
Considering that the stock value has fallen below $7, Constellation Brands has the opportunity to acquire all outstanding Canopy shares it does not own for just above $2 billion.
How much of Canopy Growth does constellation own?
Collectively, the common shares now increase Constellation Brand’s ownership of Canopy Growth to 38.6 percent of the issued and outstanding common shares. Assuming full exercise of all remaining warrants and full conversion of the notes, Constellation Brands would own a nearly 55.8 percent stake in Canopy Growth.
You may be thinking “What does constellation’s 38% stake in Canopy Growth mean?”
The price Constellation paid per share to up its ownership stake in Canopy Growth to 38% was a 51% premium to where Canopy had closed on the day prior to the equity stake announcement. The deal comes with 139.7 million in new warrants to be held by Constellation Brands.
Constellation Brands, the maker of Corona and Modelo, initially purchased a 9.9% equity stake in Canopy Growth in late October for about $190 million.
Who is constellation’s subsidiary Greenstar?
Constellation, the maker of Corona and Modelo beers, said its indirect, wholly-owned subsidiary Greenstar Canada Investment Limited Partnership has exercised an aggregate of 18.88 million warrants to purchase Canopy Growth stock.
Then, how many common shares does Constellation Brands own?
Lets dig in. as a result of the acquisition of new common shares in Canopy Growth, Constellation Brands now indirectly holds a total of 142.25 million common shares, 139.75 million warrants to purchase common shares, and C$200 million principal amount of senior notes.