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Stock Alert: Coty Shares Up 12% In Premarket On KKR Investment News

Shares of Coty Inc. (COTY) are rising over 12% in pre-market today, after the company announced a $750 million convertible preferred equity investment from KKR.

The stock has been trading in the range of $3.02 - $14.14 for the past one year, and closed Friday's trade at $5.20, up 27 cents or 5.48%. COTY is currently trading at $5.85, up 65 cents or 12.50% in the pre-market trading session.

The company announced a strategic partnership with global investment firm KKR which would provide the company with an initial investment of $750 million through the sale of convertible preferred shares to KKR.

Additionally, Coty and KKR signed a Memorandum of Understanding for the sale of a majority in Coty's Professional Beauty and Retail Hair Businesses including the Wella, Clairol, OPI and ghd brands at a contemplated enterprise value of $4.3 billion, or 12.3x 2019 EBITDA.

Coty also reported Q3 net loss of $271.6 million or $0.36 per share compared to a loss of $12.1 million or $0.02 per share last year. Adjusted net loss was $61.7 million or $0.08 per share for the quarter. Net revenues declined 23.2% to $1.53 billion, including a negative foreign exchange impact of 2.3%. Analysts polled by Thomson Reuters expected a loss of $0.01 per share and revenue of $1.53 billion for the quarter.

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