Coca-Cola European Partners (CCEP) announced that it has entered into binding agreements to acquire Coca-Cola Amatil Limited (CCL).
The acquisition will expand CCEP’s consumer reach and allow access to complementary, developed markets with attractive long-term macro growth fundamentals.
CCEP has entered into a binding Scheme Implementation Deed (SIC), under which it is to acquire 69.2% of the entire existing issued share capital of CCL for $12.75 (€7.84) per share in cash from independent shareholders.
The Board of Directors of CCL, excluding The Coca-Cola Company’s (KO) nominee directors, has reaffirmed that it intends to unanimously recommend the scheme to independent shareholders.
The recommendation is subject to the absence of a superior proposal and an independent expert concluding, and continuing to conclude, that the scheme is fair and reasonable and in the best interests of the independent shareholders, the company added.
'A Fantastic Opportunity'
Chief executive officer of CCEP, Damian Gammell, said, “This is a fantastic opportunity to bring together two of the world’s best bottlers to drive faster and more sustainable growth.
“Since the creation of CCEP four years ago, we have proven our ability to create value through expansion and integration. Now is the right time to move forward by taking on these great franchises and markets.”
CCEP has also entered into a co-operation and sale deed with KO to acquire the remaining 30.8% interest in CCL.
As part of the agreement, KO will receive A$9.57 (€5.88) per share in cash for a part of its shareholding, which comprises 10.8% of CCL’s shares.
CCEP will acquire all of KO’s remaining 20% shareholding in CCL for A$10.75 (€6.61) per share, either in cash or a combination of cash and the issue of CCEP shares at an agreed conversion ratio.
It is subject to customary conditions, including among others, approval from CCL shareholders, Australian Foreign Investment Review Board and New Zealand Overseas Investment Office.
Coca-Cola Amatil Limited (CCL) is one of the largest bottlers and distributors of ready-to-drink non-alcoholic and alcoholic beverages and coffee in the Asia Pacific region.