Aboitiz Equity Ventures Inc. (AEV) said Monday it expects to close the acquisition of Cola-Cola Bottlers Philippines Inc. (CCBPI) by the first quarter of 2024.
AEV and joint venture partner Coca-Cola Europacific Partners Plc. (CCEP) signed a definitive agreement to finalize their planned acquisition of CCBPI from The Coca-Cola Company (TCCC), the Aboitiz Group said in a disclosure to the stock exchange.
AEV and CCEP signed in August a non-binding letter of intent to acquire the TCCC’s 100-percent stake in CCBP, which has an enterprise value of $1.8 billion on a debt-free and cash-free basis.
Under the agreement, AEV will hold a 40-percent beneficial ownership in CCBPI, while CCEP will have the remaining 60-percent stake.
The final cash consideration will be subject to cash, debt-like items and working capital adjustments at completion of the transaction. It is subject to a number of customary closing conditions, including clearance from the Philippine Competition Commission, the government’s anti-trust body.
AEV said the acquisition would support its portfolio diversification strategy to enter the branded consumer goods space.
It is one of the most diversified conglomerates in the country with interests in power generation, financial services, real estate development, infrastructure, food, data science and artificial intelligence.
“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 conglomerate said.
CCBI operates 19 manufacturing plants and about 50 sales offices and distribution centers across the country.
Meanwhile, the proposed acquisition would also build on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) in 2021. It primarily bottles and sells Coca-Cola products in Western Europe.