The Redbubble Ltd (ASX: RBL) share price will be one to watch on Monday morning.
This follows the release of an announcement by S&P Dow Jones Indices after the market close on Friday.
What was announced?
On Friday, S&P Dow Jones Indices announced that it would be removing beverage giant Coca-Cola Amatil Limited (ASX: CCL) from the benchmark S&P/ASX 200 Index (ASX: XJO).
This follows news that the independent shareholders of Coca-Cola Amatil have voted in favour of the takeover offer by Coca-Cola European Partners (CCEP).
That offer sees the European bottler acquire Coca-Cola Amatil all the shares in Coca-Cola Amatil held by independent shareholders (all shareholders other than The Coca-Cola Company) for $13.50 cash per share less the cash amount of the final second half 2020 dividend of 18 cents per share.
According to the results of the vote, 81.55% of independent shareholders present and voting, in person or by proxy, voted in favour of the scheme resolution.
This means that pending approval of the Supreme Court of New South Wales on Tuesday, the takeover will essentially be complete.
Hence why S&P Dow Jones Indices is planning to remove Coca-Cola Amatil’s shares from the benchmark index this week.
How does this impact Redbubble shares?
S&P Dow Jones Indices needs another company to replace Coca-Cola Amatil and has picked the ecommerce company.
According to the release, if everything goes to plan, S&P Dow Jones will remove Coca-Cola Amatil from the ASX 200 and replace it with Redbubble prior to the open of trading on 22 April.
This could be good news for the Redbubble share price as many fund managers have strict mandates in relation to the shares they can buy.
One common mandate is that they only buy shares listed on the ASX 200. So, the company’s inclusion on the index brings Redbubble into play for fund managers looking to deploy funds.
In addition to this, index-tracking funds will be needing to buy its shares in order to reflect the changes.
All in all, increased demand from the buy side could be a positive for the Redbubble share price in the coming weeks.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- 5 things to watch on the ASX 200 on Monday
- Coca-Cola Amatil (ASX:CCL) share price slides as shareholders vote
- 5 things to watch on the ASX 200 on Friday
- Leading broker names its best ASX share ideas for April
- Will the Kogan (ASX:KGN) share price making a comeback in April?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why the Redbubble (ASX:RBL) share price could charge higher today appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/32mMnSe
Leave a Reply