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Aboitiz to buy Coke Philippines for $1.8 billion

MANILA, Philippines — Aboitiz Corporation, a Cebu-based conglomerate now led by Sabin Aboitiz, has partnered with Coca-Cola Europacific Partners PLC (CCEP) to acquire Coca-Cola Beverages Philippines Inc. (CCBPI).

The proposed acquisition continues Aboitiz Group’s acquisition, which in recent years has added companies and institutions to its portfolio, including Gold Coin, its consumer banking business. of Citigroup in the Philippines and a majority stake in the company. .

Aboitiz Equity Ventures (AEV) announced yesterday that it has partnered with CCEP and signed a non-binding letter of intent with The Coca-Cola Company to acquire 100% of TCCC’s interest in CCEPI for $1. $0.8 billion debt-free and cashless. basis, consistent with TCCC’s stated intention to divest from the bottling business.
“AEV has signed a non-binding term sheet and is in advanced discussions with CCEP on a possible joint transaction, which could result in the acquisition of CCBPI from TCCC, on a 60 basis:
40 between CCEP and AEV,” AEV said in its announcement. If completed, the proposed acquisition would build on AEV’s strategy of diversifying its portfolio to enter the branded consumer goods space and CCEP’s successful expansion into the Asia region – Pacific through the acquisition of Coca-Cola Amatil in 2021.

The company says AEV will be well-positioned to support CCBPI’s growth ambitions, building on the synergies that can be generated by AEV’s other businesses.

AEV also said that AEV’s proposed acquisition of CCBPI with CCEP offers an excellent opportunity to co-acquire a well-established and well-managed business with attractive growth and profit prospects.

However, the proposed acquisition is still subject to a number of conditions, including satisfactory completion of a well-conducted due diligence process, obtaining approval from the AEV and CCEP boards, and the parties sign a definitive agreement.

CCEP has stated in a separate filing that it will be the majority owner (60%) and that it will have to consolidate CCEPI from the date of acquisition and establish a non-controlling interest that represents the minority interest of the company. AEV (40%). The company will be governed by a board of directors consisting of five members, three appointed by CCEP and two appointed by AEV. CCEP will also appoint a Chief Executive Officer, CCEP said.

If there aren’t any issues and certain approvals from the government and regulators, including permission from the Philippine Competition Commission, are required, the transaction could close this year.

CCEP bottled and sold Coca-Cola products in Western Europe, Australia and New Zealand, while AEV made major investments in electricity, banking and financial services, food, infrastructure, land science and data as well as artificial intelligence.

AEV is on its so-called great transformation journey to become the Philippines’ first ‘technology corporation’.

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