Coats Group plc (GB:COA) has released an update.
Coats Group plc has successfully completed a significant move to de-risk its UK defined benefit pension scheme by purchasing a £1.3 billion bulk annuity policy, thereby fully hedging its pension liabilities. This strategic action eliminates financial and demographic risks associated with the scheme, potentially allowing for its future removal from the company’s balance sheet. The transaction will enhance Coats’ cash generation, enabling increased investments or returns to shareholders, after a one-time additional funding requirement and a temporary increase in leverage.
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