C&C set for stock market listing

THE drinks and snack food group C&C is set to announce plans soon for a stock market listing this summer, according to reports yesterday.

C&C, which owns Bulmers cider, Tayto crisps and Ballygowan mineral water, scrapped a planned flotation two years ago on the Dublin and London stock markets because of the poor investment climate.

However, C&C is said to have had its financial advisers explore the possibility of a summer flotation, which could value the company at €1 billion.

The bulk of C&C is owned by British private equity group BC Partners. The remaining 10% is held by management including chairman Tony O'Brien and chief executive Maurice Pratt, who joined C&C from Tesco Ireland to lead the listing.

He stood to make €5 million from the previous flotation, but his windfall will be reduced as the value of C&C has been lowered since from €1.5bn to €1bn.

C&C has been making inroads to reducing its massive debt pile by selling its Italian spirits business Barbero last December for €150 million. This has reduced its debt to around €500 million and is seen as important if the company is to attract support from institutional investors

The company is due to publish it annual results shortly. Its last set of accounts, for the 18 months to end February 2003, showed operating profits down 3.5% at €191 million.

This was because of lower cider sales volumes, which were down 11% because of the extra tax on the drink introduced in the 2002 budget.

While management have repeatedly maintained they are in favour of floating the company, BC Partners had asked investment bank Merrill Lynch to examine other options, including a trade sale.

Weekend reports said the flotation plans could be announced as soon as this week.

A flotation of C&C would be the largest the Irish stock market has seen in three years. Last month eircom made a return to the exchange, but its shares have performed poorly since they began trading.