PCC approves $1.8-B Coke PH sale to Aboitiz, partner
The $1.8-billion acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI) by Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners Plc (CCEP) takes a further step towards completion after getting the green light from the Philippine Competition Commission (PCC).
In a disclosure to the Philippine Stock Exchange (PSE), AEV said they have received the PCC certificate of approval for their joint acquisition of 100 percent of CCBPI from The Coca-Cola Company (TCCC).
CCBPI is the exclusive bottler and distributor of the products of TCCC in the Philippines and benefits from attractive profitability and growth prospects.
Under the terms of the proposed acquisition, CCEP will own 60 percent of CCBPI while AEV will take the remaining 40 percent ownership.
The transaction values 100 percent of CCBPI at $1.8 billion on a debt-free, cash-free basis and the final cash consideration will be subject to cash, debt-like items and working capital adjustments at completion of the transaction.
Meanwhile, a shareholders’ agreement between CCEP and AEV with comprehensive governance terms will take effect at closing which is expected to be in the first quarter of 2024.
“The proposed acquisition would build on AEV’s portfolio diversification strategy to enter the branded consumer goods space,” the firm said.
It added that, “AEV is well positioned to support CCBPI’s growth ambition due to the synergies which could be generated from AEV’s other business interests in the country.”
The proposed acquisition would also build on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) in 2021.
AEV’s planned acquisition of a 40 percent interest in CCBPI will be partly funded by the proceeds of its P17.45 billion bond issuance of P10 billion, with an oversubscription option of up to P7.45 billion.
The issuance is the second tranche of AEV’s P30-billion Shelf Registration from 2022 to 2025 (2022 Debt Securities Program).
The proceeds of the proposed bond issuance will be mainly used to refinance the company’s P6.85 billion bonds maturing on Nov. 16, 2023 and to partially fund the potential acquisition of a 40 percent equity interest in CCBPI.
Source : https://mb.com.ph/2024/1/31/pcc-approves-1-8-b-coke-ph-sale-to-aboitiz-partner?fbclid=IwAR21qwqn7HGPkyFsjcQYXMG-VR6Z3KuSVrp3ogpF1BEmVyZhS88ukSops6Q
