In this news, we discuss the Coca-Cola European Partners makes $6.6 billion takeover offer for Coca-Cola Amatil.
(Reuters) – Coca-Cola Amatil Ltd CCL.AX said on Monday that Coca-Cola European Partners CCEPC.L had offered to buy the Australian bottler for A $ 9.23 billion ($ 6.58 billion), in what would be the country’s biggest contract this year.
The world’s largest independent Coca-Cola bottler offers AU $ 12.75 per share, an 18.6% premium over the last closing price of the Sydney-based company which operates in six Asia-Pacific countries . The company said that, including the long-term incentive stock rights, the implied value of the share transaction was A $ 9.28 billion.
The takeover has the backing of independent Amatil shareholders, the company said.
US-based Coca-Cola Co KO.N has a 30.8% stake in Coca-Cola Amatil and a 19.4% stake in Coca-Cola European Partners, according to data from Refinitiv.
The two companies, which bottle and sell Coca-Cola drinks in their respective markets, have been hit by lockdowns that have reduced volumes and forced them to look to other channels.
Coca-Cola Amatil shares are down almost a fifth from their 2020 high.
Business in the third quarter improved, Amatil said, due to an easing of COVID-19 restrictions and a resumption of on-the-go channels such as fast food outlets, cafes and convenience stores.
“This has been particularly the case in Western Australia and New Zealand … which gives a glimpse of the expected shape of the recovery that can be expected,” said Alison Watkins, Managing Director of Amatil, in a statement. communicated.
The company has 32 sites production and operates in Australia, New Zealand, Indonesia, Fiji, Papua New Guinea and Samoa.
(1 USD = 1.4027 Australian dollar)
Report by Nikhil Kurian Nainan in Bengaluru; Edited by Peter Cooney
Original © Thomson Reuters