Coca-Cola HBC reportedly acquires 75% stake in Coca-Cola beverages Afric

Bottling partner Coca-Cola HBC has reportedly reached an agreement with The Coca-Cola Company (TCCC) and Gutsche Family Investments (GFI) to acquire a 75 percent stake in Coca-Cola Beverages Africa (CCBA).

According to Creamer Media’s Engineering News, the US$2.6-billion purchase price will be settled through a new bridge financing facility, covering a cash component and Coca-Cola HBC shares issued to GFI representing 5.47 percent of the Coca-Cola HBC group’s enlarged issued share capital.

The companies have also agreed to an option agreement allowing Coca-Cola HBC to acquire the remaining 25 percent equity interest in CCBA still held by TCCC. Once completed, the deal will create the second-largest Coca-Cola bottling partner globally by volume.

Coca-Cola HBC Chairperson Anastassis David described the transaction as a historic milestone:
“For decades we have invested to unlock Africa’s extraordinary potential. We look forward to accelerating this positive momentum with CCBA to deliver lasting value for our stakeholders and make a positive impact in the communities we serve,” he said.

The transaction is expected to be completed by the end of next year, subject to regulatory approvals.

Coca-Cola HBC is reportedly pursuing a secondary listing on the Johannesburg Stock Exchange to support its commitment to South Africa and the African continent.

Coca-Cola HBC Chief Executive Officer, Zoran Bogdanovic, noted:
“Having established our business in Nigeria nearly 75 years ago, and with the successful acquisition and integration of the Egypt business three years ago, we have a deep understanding of the compelling proposition Africa presents. It has a sizable and growing consumer base, and there are significant opportunities to increase per capita consumption.”

GFI Chairperson, Philipp Gutsche, expressed confidence in Coca-Cola HBC’s ability to take CCBA forward:

“The Gutsche family will remain invested in the Coca-Cola system and Africa through its shareholding in Coca-Cola HBC,” he said.

Under the sale and purchase agreement, Coca-Cola HBC will acquire a 41 percent equity interest in CCBA from European Refreshments Unlimited Company and Coca-Cola Holdings Africa, both TCCC subsidiaries, for US$1.3 billion in cash.