The Coca-Cola Company (NYSE:KO) increased its stake in Keurig Green Mountain Inc (NASDAQ:GMCR) to more than 26 million shares or 16% based on its latest 13D filing with the Securities and Exchange Commission (SEC).
The filing shows that Atlantic Industries, the wholly-owned subsidiary of the beverage giant purchased additional 2,805,591 shares of Keurig Green Mountain Inc (NASDAQ:GMCR) between May 8 to May 12, 2014 in the open market.
Atlantic Industries beneficially owns 19,489,730 shares of the K-cup maker. On May 12, the company entered a letter of agreement to purchase additional shares of 26,037,771 shares from Credit Suisse Capital LLC.
Given the right to purchase up to 6,548,041 shares of the K-cup maker, Atlantic Industries/The Coca-Cola Company (NYSE:KO) assumes that it beneficially owns 26,037,771 shares of 26,037,771 shares of Keurig Green Mountain Inc (NASDAQ:GMCR).
Based on the agreement of Atlantic Industries with Credit Suisse Capital LLC, it has the right to purchase the additional 6,548,041 shares of the K-cup maker no later than February 13, 2015.
The Coca-Cola Company (NYSE:KO) said, “These incremental purchases demonstrate our continued belief that Keurig Green Mountain has substantial growth potential.”
The Coca-Cola Company (NYSE:KO) initially acquired a 10% stake or 16, 684,139 shares of Keurig Green Mountain Inc (NASDAQ:GMCR) as part of its partnership agreement to produce and sell the Coca-Cola branded single-serve, pod-based cold beverages. The amount of the initial investment was $1.25 billion. At the time, the stock price of the K-cup maker surged more than 45%.
Muhtar Kent, chairman and CEO of Coca-Cola Company (NYSE:KO) previously stated that the beverage giants’ agreement with the K-cup maker demonstrates their “creative approach to partnerships and ability to identify and stay at the forefront of consumer trends driving the industry.”
Following reports of the additional investment of Coca-Cola Company (NYSE:KO), the stock price of Keurig Green Mountain Inc (NASDAQ:GMCR) climbed more than 7% to $119.07 per share today.
On the other hand, the shares of Coca Cola Company (NYSE:KO) closed $41.11 per share, up by 0.71%.
 increased its stake in Keurig Green Mountain Inc (NASDAQ:GMCR) to more than 26 million shares or 16% based on its latest){kind=link}