Monster Beverage Up 23% After Coke Takes Stake In The Company

Monster Beverage shares are up more than 22% after Coca-Cola announced plans to take a 16.7% stake in the company.

Coke said it will a 16.7% equity stake in the company and will have two directors on Monster's board.

Following the announcement Coke shares are up 1.4% after hours.

As part of the deal, Coke will make a $2.15 billion cash payment to Monster and transfer its worldwide energy business to the company.

In exchange, Monster will move its non-energy business to Coke and the company's will enter into expanded distribution agreements.

Coke CEO Muhtar Kent said, "Our equity investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category."

This deal from Coke comes after the company took a 10% stake in Keurig Green Mountain back in February

Here's the full release from Coca-Cola.