The Philippine Competition Commission has given the green light for Aboitiz Equity Ventures Inc. to proceed with the acquisition of beverage maker Coca-Cola Beverages Philippines Inc.
Aboitiz Equity, the diversified investment holding company of the Aboitiz Group, has formed a joint venture company with Coca-Cola Europacific Partners PLC to acquire 100 percent of CCBPI for USD1.8 billion. The joint venture company is called CCEP Aboitiz Beverages Philippines Inc.
The purchase price was for an enterprise value of USD1.8 billion on a cash-free, debt-free basis, arrived at on a willing buyer, willing seller basis. The value is subject to cash, debt-like items and working capital adjustments at closing of the transaction that is expected to happen in February. Also, lump sum cash payment at closing with a true-up adjustment post-closing.
Listed Aboitiz Equity will take 40 percent of CCBPI while Coca-Cola Europacific will hold the remaining 60 percent.
CCBPI, the exclusive bottler and distributor of the products of The Coca-Cola Co., is the leading beverage supplier in the Philippines, with a wide supply chain footprint consisting of 73 production lines and 19 plants.
The CCBPI acquisition is part of Aboitiz Equity’s portfolio diversification strategy to enter the branded consumer goods space. It said CCBPI offers attractive profitability and growth prospects.
The sellers are Coca-Cola South Asia Holdings, Inc., Coca-Cola South Asia Holdings, Inc. and Coca-Cola Holdings (Overseas) Ltd.
