The acquisition is financed through a new bridge loan covering the cash consideration, as well as Coca-Cola HBC shares issued in favor of GFI.
Major Deal in Africa, Coca-Cola HBC has announced the acquisition of Coca-Cola Beverages Africa (CCBA) for $2.6 billion.
Specifically, Coca-Cola HBC announced that it has signed a definitive purchase agreement to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) from The Coca-Cola Company and Gutsche Family Investments, for a total consideration of $2.6 billion, implying a total equity value of $3.4 billion for 100% of CCBA.
CCBA operates in 14 African markets, representing approximately 40% of Coca-Cola product volumes on the continent.
With this move, Coca-Cola HBC significantly strengthens its footprint in the African market, aiming to capitalize on the dynamic growth of local economies. The acquisition is expected to create added value for shareholders, with earnings per share projected to increase from the first year post-completion.
At the same time, the company plans a secondary listing on the Johannesburg Stock Exchange, further strengthening its presence in South Africa and expanding its investor base.
Acquisition financing
The acquisition is financed through a new bridge loan, covering the cash consideration, as well as Coca-Cola HBC shares issued to GFI, representing 5.47% of the expanded issued and outstanding share capital of the company.
Additionally, Coca-Cola HBC and TCCC have agreed to enter into a put/call option agreement, allowing Coca-Cola HBC to purchase — or TCCC to sell — the remaining 25% stake in CCBA that will remain with TCCC after the transaction’s completion.
Anastasios David, Chairman of Coca-Cola HBC, stated:
"This milestone marks a historic moment for Coca-Cola HBC and continues our legacy of growth and collaboration across Africa.
For decades, we have invested to harness Africa’s exceptional potential. We look forward to accelerating this positive momentum with CCBA, delivering lasting value to our shareholders and making a positive impact on the communities we serve.
On behalf of the board, I would like to thank The Coca-Cola Company and the Gutsche family for their continued collaboration and trust."
Zoran Bogdanovic, CEO of Coca-Cola HBC, commented:
"We are excited to announce the acquisition of a majority stake in CCBA, with the prospect of full ownership in the future.
Having established our presence in Nigeria nearly 75 years ago, and following the successful acquisition and integration of our operations in Egypt three years ago, we have a deep understanding of the attractive opportunities Africa presents. The continent has a large and growing consumer base, as well as significant opportunities to increase per capita consumption.
With our excellent, tailored capabilities, commercial expertise, and pioneering approach to sustainability and community support — strengthened by our talented workforce — we believe we have the winning formula to achieve sustainable and profitable growth and create value for all stakeholders.
We deeply value the trust shown by The Coca-Cola Company and GFI and look forward to welcoming the CCBA team into Coca-Cola HBC to drive our shared success."*
Henrique Braun, Executive Vice President and COO of The Coca-Cola Company, said:
"Coca-Cola HBC is a reliable and significant bottler and will play a pivotal role in the next phase of CCBA’s growth.
Like Coca-Cola HBC, we see tremendous opportunities for growth and value creation in Africa. We appreciate the crucial role Coca-Cola HBC plays within The Coca-Cola Company system and its continued investments to grow our joint operations."
Philipp H. Gutsche, Chairman of GFI, stated:
"The Gutsche family has been dedicated to The Coca-Cola Company’s operations in Southern and Eastern Africa for 85 years and is confident that Coca-Cola HBC is the right partner to advance CCBA’s operations, successfully achieving our shared vision for the Coca-Cola system in Africa.
The Gutsche family will remain actively invested in the Coca-Cola system and Africa through its shareholding in Coca-Cola HBC."
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Specifically, Coca-Cola HBC announced that it has signed a definitive purchase agreement to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) from The Coca-Cola Company and Gutsche Family Investments, for a total consideration of $2.6 billion, implying a total equity value of $3.4 billion for 100% of CCBA.
CCBA operates in 14 African markets, representing approximately 40% of Coca-Cola product volumes on the continent.
With this move, Coca-Cola HBC significantly strengthens its footprint in the African market, aiming to capitalize on the dynamic growth of local economies. The acquisition is expected to create added value for shareholders, with earnings per share projected to increase from the first year post-completion.
At the same time, the company plans a secondary listing on the Johannesburg Stock Exchange, further strengthening its presence in South Africa and expanding its investor base.
Acquisition financing
The acquisition is financed through a new bridge loan, covering the cash consideration, as well as Coca-Cola HBC shares issued to GFI, representing 5.47% of the expanded issued and outstanding share capital of the company.
Additionally, Coca-Cola HBC and TCCC have agreed to enter into a put/call option agreement, allowing Coca-Cola HBC to purchase — or TCCC to sell — the remaining 25% stake in CCBA that will remain with TCCC after the transaction’s completion.
Anastasios David, Chairman of Coca-Cola HBC, stated:
"This milestone marks a historic moment for Coca-Cola HBC and continues our legacy of growth and collaboration across Africa.
For decades, we have invested to harness Africa’s exceptional potential. We look forward to accelerating this positive momentum with CCBA, delivering lasting value to our shareholders and making a positive impact on the communities we serve.
On behalf of the board, I would like to thank The Coca-Cola Company and the Gutsche family for their continued collaboration and trust."
Zoran Bogdanovic, CEO of Coca-Cola HBC, commented:
"We are excited to announce the acquisition of a majority stake in CCBA, with the prospect of full ownership in the future.
Having established our presence in Nigeria nearly 75 years ago, and following the successful acquisition and integration of our operations in Egypt three years ago, we have a deep understanding of the attractive opportunities Africa presents. The continent has a large and growing consumer base, as well as significant opportunities to increase per capita consumption.
With our excellent, tailored capabilities, commercial expertise, and pioneering approach to sustainability and community support — strengthened by our talented workforce — we believe we have the winning formula to achieve sustainable and profitable growth and create value for all stakeholders.
We deeply value the trust shown by The Coca-Cola Company and GFI and look forward to welcoming the CCBA team into Coca-Cola HBC to drive our shared success."*
Henrique Braun, Executive Vice President and COO of The Coca-Cola Company, said:
"Coca-Cola HBC is a reliable and significant bottler and will play a pivotal role in the next phase of CCBA’s growth.
Like Coca-Cola HBC, we see tremendous opportunities for growth and value creation in Africa. We appreciate the crucial role Coca-Cola HBC plays within The Coca-Cola Company system and its continued investments to grow our joint operations."
Philipp H. Gutsche, Chairman of GFI, stated:
"The Gutsche family has been dedicated to The Coca-Cola Company’s operations in Southern and Eastern Africa for 85 years and is confident that Coca-Cola HBC is the right partner to advance CCBA’s operations, successfully achieving our shared vision for the Coca-Cola system in Africa.
The Gutsche family will remain actively invested in the Coca-Cola system and Africa through its shareholding in Coca-Cola HBC."
www.bankingnews.gr
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