Johannesburg - Anheuser-Busch InBev will transfer its 54.5 percent stake in Coca-Cola Beverages Africa to the New York-listed Coca-Cola Company for R44 billion.
This follows AB InBev's R1.5 trillion ($103 billion) takeover of brewer SABMiller earlier this year in a move that created the world's biggest beer maker.
In a statement on Wednesday, AB InBev, which has several listings including on the JSE, noted CCBA covers countries including South Africa, Namibia, Kenya, Uganda, Tanzania,
Ethiopia, Mozambique, Ghana, Mayotte and Comoros.
In addition, the companies have agreed, in principle, that The Coca-Cola Company will acquire AB InBev’s interest in bottling operations in
Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras for an undisclosed amount.
The transactions are subject to the relevant regulatory and
minority approvals and are expected to close by the end of 2017.
The Coca-Cola Company plans to hold all of these territories
temporarily until they can be refranchised to other partners. The Coca-Cola Company’s intent is to account
for the acquired stakes as a discontinued operation for reporting purposes.
Read also: PIC becomes shareholder in Distell
AB InBev CEO Carlos Brito notes the company is "happy that we
have been able to reach this agreement with The Coca-Cola Company in a timely manner and with a
satisfactory outcome for all parties".
“We are pleased to have reached an agreement quickly that is
in everyone’s best interests,” adds Muhtar Kent, chairman and CEO of The Coca-Cola Company. “We will
move forward with our long-term strategic plan in these important growth markets. We are continuing
negotiations with a number of parties who are highly qualified and interested in these bottling
territories and look forward to refranchising these territories as soon as practical following regulatory
approval.”
BUSINESS REPORT