Coca-Cola HBC set to acquire majority ownership in Coca-Cola Beverages Africa

Coca-Cola HBC AG announced that it plans to acquire a 75% shareholding in Coca-Cola Beverages Africa Pty Ltd (“CCBA”) from The Coca-Cola Company (“The Coca-Cola Company” or “TCCC”) and Gutsche Family Investments Pty Ltd (“GFI”) for a combined purchase price of USD $2.6 billion, implying an equity value for 100% of CCBA of USD $3.4 billion. The acquisition is being funded through a new bridge financing facility to cover the cash consideration and Coca-Cola HBC shares issued to GFI representing 5.47% of Coca-Cola HBC’s enlarged issued and outstanding share capital.

Coca-Cola HBC bottles and sells the beverages of The Coca-Cola Company, which includes Costa Coffee, exclusively in 28 markets.

Once completed, the acquisition will create the second largest Coca-Cola bottling partner by volume globally, with leading market positions across Africa and Europe. Coca-Cola Beverages Africa operates in 14 markets across Africa, representing c.40% of Coca-Cola system volumes sold across the continent.

In addition, Coca-Cola HBC and TCCC have agreed to enter into an option agreement enabling Coca-Cola HBC to purchase, or TCCC to sell, the remaining 25% equity interest in CCBA still owned by TCCC following completion.

Coca-Cola HBC intends to pursue a secondary listing on the Johannesburg Stock Exchange to underpin its commitment to both South Africa and the African continent

Anastassis G David, chairman of the board of Coca-Cola HBC, said, “This milestone marks a historic moment for Coca-Cola HBC and continues our legacy of growth and partnership across Africa. For decades, we have invested to unlock Africa’s extraordinary potential. We look forward to accelerating this positive momentum with CCBA to deliver lasting value for our stakeholders and make a positive impact in the communities we serve.”

Zoran Bogdanovic, CEO Coca-Cola HBC, commented, “We are very excited to announce the acquisition of a majority stake in CCBA, with a path to full ownership. “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.”

Henrique Braun, EVP and COO of The Coca-Cola Company, added, “Coca-Cola HBC is a trusted and important bottler and will play a key role in CCBA’s next phase of growth. Like Coca-Cola HBC, we see tremendous opportunity for growth and value creation in Africa.”

Philipp H Gutsche, chairman of GFI, commented, “The Gutsche family have been committed to The Coca-Cola Company business in Southern and East Africa for 85 years and are confident that Coca-Cola HBC are the right partners to take the CCBA business forward to successfully achieve the joint vision for the Coca-Cola system in Africa.”

The acquisition of Coca-Cola Beverages Africa:

• Materially expands Coca-Cola HBC’s existing African presence, bringing together two leading bottlers in the continent.
• Drives further diversification of Coca-Cola HBC’s geographic footprint, with increased exposure to high growth markets.
• Consistent with the pillars of Coca-Cola HBC’s growth strategy and vision of being the leading 24/7 beverage partner as CCBA is a leading player in the non-alcoholic ready-to-drink (NARTD) category across its key markets, with a winning portfolio of over 40 global and local brands.
• Clear opportunity to leverage Coca-Cola HBC’s expertise in emerging markets, to unlock further growth. Coca-Cola HBC has a proven track record of operating in Africa, with a long-term presence in Nigeria and the successful integration of Egypt, which adds to CCBA’s significant experience in the continent.
• Further strengthens Coca-Cola HBC’s long-term strategic partnership with The Coca-Cola Company. TCCC and Coca-Cola HBC have been longstanding partners, and the Acquisition reflects a joint vision to continue to create value for all stakeholders for the long-term.

The acquisition is targeted to be completed by the end of 2026, subject to approvals.