AB InBev Sells Out Of Coca-Cola For R44bn

Johannesburg – Anheuser-Busch InBev will transfer its 54.5 percent stake in Coca-Cola Beverages Africa to the New York-listed Coca-Cola Company for R44 billion.

This follows AB InBev’s R1.5 trillion ($103 billion) takeover of brewer SABMiller earlier this year in a move that created the world’s biggest beer maker.

In a statement on Wednesday, AB InBev, which has several listings including on the JSE, noted CCBA covers countries including South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte and Comoros.

In addition, the companies have agreed, in principle, that The Coca-Cola Company will acquire AB InBev’s interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras for an undisclosed amount.

The transactions are subject to the relevant regulatory and minority approvals and are expected to close by the end of 2017.

The Coca-Cola Company plans to hold all of these territories temporarily until they can be refranchised to other partners. The Coca-Cola Company’s intent is to account for the acquired stakes as a discontinued operation for reporting purposes.

AB InBev CEO Carlos Brito notes the company is “happy that we have been able to reach this agreement with The Coca-Cola Company in a timely manner and with a satisfactory outcome for all parties”.

“We are pleased to have reached an agreement quickly that is in everyone’s best interests,” adds Muhtar Kent, chairman and CEO of The Coca-Cola Company. “We will move forward with our long-term strategic plan in these important growth markets. We are continuing negotiations with a number of parties who are highly qualified and interested in these bottling territories and look forward to refranchising these territories as soon as practical following regulatory approval.”

Source: AB InBev sells out of Coca-Cola for R44bn | IOL

Views:
8
Article Categories:
INVESTMENTMONEY & FINANCE

Leave a Reply

Your email address will not be published. Required fields are marked *