Aboitiz Equity Ventures Inc. (AEV) said Monday it signed a definitive agreement with Coca-Cola Europacific Partners Plc. (CCEP) to jointly acquire Coca-Cola Beverages Philippines Inc. (CCBPI) from The Coca-Cola Company.
CCBPI is the exclusive bottler and distributor of the products of The Coca-Cola Company in the Philippines and benefits from attractive profitability and growth prospects.
AEV said among the key terms of the proposed acquisition are 60:40 ownership structure between CCEP and AEV, with CCBPI valued at $1.8 billion on a debt-free, cash-free basis.
It said the final cash consideration would be subject to cash, debt-like items and working capital adjustments at completion of the transaction
The shareholders’ agreement between CCEP and AEV with comprehensive governance terms will take effect at closing. The transaction is subject to a number of customary closing conditions, including clearance from the Philippine Competition Commission.
“The proposed acquisition would build on AEV’s portfolio diversification strategy to enter the branded consumer goods space. AEV is well positioned to support CCBPI’s growth ambition due to the synergies which could be generated from AEV’s other business interests in the country. The proposed acquisition would also build on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) in 2021,” AEV said in a statement.
“Further updates will be provided in due course. The transaction is currently expected to close in Q1 of 2024,” said AEV, one of the leading conglomerates in the Philippines with over 100 years of business history.
AEV has major investments in power, banking and financial services, food, infrastructure, land and data science and artificial intelligence. The conglomerate is on its “great transformation” journey to become the Philippines’ first “techglomerate” as it continues to shape the future by advancing business and communities.
