Coca-Cola HBC to acquire 75% stake in Coca-Cola Beverages Africa for $2.6 billion

[Coca-Cola delivery truck in Japan]
winhorse

Coca-Cola HBC AG has entered into a definitive sale and purchase agreement to acquire a 75% shareholding in Coca-Cola Beverages Africa Pty from The Coca-Cola Company (NYSE:KO [https://seekingalpha.com/symbol/KO]) and Gutsche Family Investments Pty for a combined purchase price of $2.6 billion.

The deal implies an equity value for 100% of CCBA of $3.4 billion.

The acquisition is being funded through a new bridge financing facility to cover the cash consideration and Coca-Cola HBC shares issued to GFI, representing 5.47% of Coca-Cola HBC's enlarged issued and outstanding share capital.

In addition, Coca-Cola HBC and TCCC have agreed to enter into an option agreement enabling Coca-Cola HBC to purchase, or TCCC to sell, the remaining 25% equity interest in CCBA still owned by TCCC following completion, the companies said.

Following completion, Coca-Cola HBC will represent two-thirds of Africa’s total Coca-Cola system volume.

The acquisition would result in pro forma 2024 volumes for the combined group of 4.0 billion unit cases, revenues of €14.1 billion, and EBIT of €1.4 billion.

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