AEV announces today that it (and Coca-Cola Europacific Partners PLC) has entered into a Letter of Intent with The Coca-Cola Company to jointly acquire Coca-Cola Beverages Philippines, Inc.
Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners PLC (CCEP) have entered into a non-binding Letter of Intent with The Coca-Cola Company (TCCC), setting out the terms on which AEV and CCEP propose to acquire TCCC’s 100% ownership in Coca-Cola Beverages Philippines, Inc. (CCBP) at an enterprise value of USD 1.8 billion on a debt-free cash-free basis, consistent with TCCC’s stated intent to divest its bottling operations.
AEV has signed a non-binding Term Sheet and is in advanced discussions with CCEP regarding a potential joint transaction, which may lead to the acquisition of CCBP from TCCC, based on a 60:40 ownership structure between CCEP and AEV.
If completed, the proposed acquisition would build on AEV’s portfolio diversification strategy to enter the branded consumer goods space and on CCEP’s successful expansion into the Asia-Pacific region via its acquisition of Coca-Cola Amatil in 2021. AEV would be well positioned to support CCBP’s growth ambition given the synergies that can be generated from AEV’s other businesses.
AEV’s proposed acquisition of CCBP, with CCEP, offers a great opportunity to co-acquire an established, well-run business with attractive profitability and growth prospects.
The proposed acquisition is subject to a number of conditions, including satisfactory completion of confirmatory due diligence which is well underway, receipt of AEV and CCEP’s board approvals, and the parties signing the definitive agreements.
There is, therefore, no certainty at this stage, that the proposed acquisition of CCBP will be completed, and as such, further updates will be provided in due course. Currently, assuming the definitive agreements will be agreed upon and executed, the potential transaction is expected to close around the end of FY23, subject to the receipt of certain governmental and regulatory approvals, including clearance from the Philippine Competition Commission.
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