Coca-Cola HBC To Buy 75% Of Coca-Cola Beverages Africa For $2.6 Bln

(RTTNews) - Coca-Cola HBC AG (CCH.L) said on Tuesday that it has inked a deal to buy a 75% of Coca-Cola Beverages Africa Pty Ltd from The Coca-Cola Company and Gutsche Family Investments Pty Ltd for $2.6 billion, implying an equity value of $3.4 billion for Coca-Cola Beverages Africa.

The transaction will be funded through a new debt facility to cover the cash consideration and Coca-Cola HBC shares issued to Gutsche Family representing 5.47% of Coca-Cola HBC.  

The acquisition is expected to add low-single-digit earnings per share of Coca-Cola HBC from the first full year of post-transaction.

Zoran Bogdanovic, CEO of Coca-Cola HBC, said: "Having established our business in Nigeria nearly 75 years ago and with our successful acquisition and integration of the Egypt business three years ago, we have a deep understanding of the compelling proposition Africa presents. It has a sizable and growing consumer base, and there are significant opportunities to increase per capita consumption."

In addition, Coca-Cola HBC and the Coca-Cola Company will enter into an option deal to enable Coca-Cola HBC to purchase, or the Coca-Cola Company to sell, the remaining 25% equity interest in Coca-Cola Beverages Africa still owned by the Coca-Cola Company following completion.