BC Partners, the private equity group that has been a major shareholder in C&C since 1999, sold its remaining 3.5 per cent stake in the drinks and snacks group yesterday.
Market sources said the British venture capital group placed 11.2 million shares at a price of €6.70 each with investors, ending its seven-year involvement with the company.
The placing, which was handled by Davy Stockbrokers, is believed to have been oversubscribed and C&C shares went on to finish the day eight cent, or 1.2 per cent, higher at €6.88.
Dealers and analysts welcomed the disposal, noting that the BC Partners stake has long acted as a technical overhang on the shares, as the market waited for it to be sold.
"This should clear the way for the stock to push through €7.00," noted one trader.
Friday's annual meeting, when the company is expected to issue an upbeat trading update, along with the publication next week of AC Nielsen research data, are both seen as likely catalysts for a share price advance.
BC Partners acquired its interest in C&C in 1999 when it led a buyout of Allied Domecq's stake in the company.
C&C floated two years ago and the venture capital group has steadily reduced its 92 per cent shareholding in a number of placings since then.
Most recently it sold 15.5 million shares, or 5 per cent of its shareholding, last month. That block of shares was sold at €6.52, nearly 3 per cent below yesterday's placing price.
In an unexpected development, last month's share placing was handled by Merrion Stockbrokers rather than by house broker, Davy. However, BC Partners returned to the norm for such transactions when it appointed Davy to handle yesterday's sale.
C&C has delivered handsome returns to BC Partners over the last seven years. The shares have nearly trebled in value since C&C floated in May 2004 at a price of €2.26 per share, driven largely by the strong performance of the group's cider brand, Magners, in the British market.
But C&C's soft drinks and snacks divisions have disappointed of late, prompting the group's recent decision to sell its Tayto crisp business.
