The Coca-Cola Company and AB InBev Complete Transition of Majority Ownership in Coca-Cola Beverages Africa
October 04 2017 - 4:15PM
Business Wire
Closing of Previously Announced Transition of
AB InBev’s 54.5% Equity Stake to The Coca-Cola Company Follows
Regulatory Approvals; The Coca-Cola Company Will Continue to Work
Toward Refranchising CCBA, The Largest Coca-Cola Bottler in
Africa
The Coca-Cola Company (NYSE: KO) and Anheuser-Busch InBev (AB
InBev) (Euronext: ABI) (NYSE: BUD) (MEXBOL: ANB) (JSE: ANH)
announced today that they have completed the transition of AB
InBev’s majority interest in Coca-Cola Beverages Africa (CCBA).
CCBA, the largest Coca-Cola bottler in Africa, was formed in
2016 through the combination of African non-alcoholic
ready-to-drink bottling interests of SABMiller plc, The Coca-Cola
Company and Gutsche Family Investments. AB InBev later acquired
SABMiller and reached an agreement to transition AB InBev’s 54.5%
equity stake in CCBA to Coca-Cola.
The transition, which was first announced in December 2016,
makes The Coca-Cola Company the controlling shareowner of CCBA. The
closing follows the completion of a number of regulatory approvals
across the territories in which CCBA operates.
The Coca-Cola Company plans to hold its controlling interest in
CCBA temporarily until it is refranchised. The Coca-Cola Company
will account for CCBA as a discontinued operation.
Today’s announcement reflects agreements reached with the South
African Government and the South African competition authorities on
several conditions, all of which were previously announced. The
Coca-Cola Company recognizes the value of driving CCBA’s operations
from South Africa and recommitted that CCBA will remain
incorporated and tax-resident in South Africa, and its head office
will also remain in South Africa.
The companies continue to work toward finalizing their
conditional agreement in principle for The Coca-Cola Company to
acquire AB InBev’s interest in bottling operations in Zambia,
Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and
Honduras.
As previously announced, The Coca-Cola Company’s process to
refranchise CCBA is open to South African and international
prospective partners who have the necessary skill, capacity and
commitment to drive The Coca-Cola Company’s vision for CCBA. They
will be required to abide by the commitments made by The Coca-Cola
Company to the government of the Republic of South Africa. Partner
selection will take into consideration a number of factors, as
previously announced, including a commitment to maintain South
Africa as an anchor geography for the bottler in driving the
development of CCBA on the continent and have a positive impact in
South Africa and the rest of the continent.
The Coca-Cola Company has been engaging with both South African
and international parties interested in acquiring an interest in
CCBA.
About The Coca-Cola
Company
The Coca-Cola Company (NYSE: KO) is the world’s largest total
beverage company, offering over 500 brands to people in more than
200 countries. Of our 21 billion-dollar brands, 19 are available in
lower- and no-sugar options to help people everywhere more easily
control added sugar. In addition to our namesake Coca-Cola drinks,
some of our household names around the world include: AdeS
soy-based beverages, Ayataka green tea, Dasani waters, Del Valle
juices and nectars, Fanta, Georgia coffee, Gold Peak teas and
coffees, Honest Tea, Minute Maid juices, Powerade sports drinks,
Simply juices, smartwater, Sprite, vitaminwater, and Zico coconut
water. At Coca-Cola, we’re serious about making positive
contributions to our world. That starts with reducing sugar in our
drinks and bringing new and different drinks to people everywhere.
It also means continuously working to reduce our environmental
impact, creating rewarding careers for our associates, and bringing
economic opportunity wherever we operate. In fact, together with
our bottling partners, we employ more than 700,000 people around
the world. For more information, visit our digital magazine
Coca-Cola Journey at www.coca-colacompany.com and follow The
Coca-Cola Company on Twitter, Instagram, Facebook and LinkedIn.
This press release does not constitute or form a part of any
offer or an invitation or solicitation or advertisement to purchase
and/or subscribe for securities in South Africa, including an offer
to the public for the sale of, or subscription for, or an
invitation or the solicitation of an offer to buy and/or subscribe
for, securities as defined in the South African Companies Act, 71
of 2008 (as amended).
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version on businesswire.com: http://www.businesswire.com/news/home/20171004005924/en/
The Coca-Cola CompanyInvestors:Tim
Leveridge, +1 404-676-7563tleveridge@coca-cola.comorMedia:South AfricaIan
Hirschfeldihirschfeld@coca-cola.comorUnited
StatesScott Leith, +1 404-676-8768sleith@coca-cola.com
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