Aboitiz Equity Ventures Inc. teamed up with Coca-Cola Europacific Partners PLC to acquire beverage bottler Coca-Cola Beverages Philippines Inc. for $1.8 billion. AEV will take 40 percent in CCBP under the agreement.
AEV and CCEP said in a joint statement they signed a non-binding letter of intent with The Coca-Cola Company to acquire the latter’s 100-percent stake in CCBP on a debt-free cash-free basis
The deal is consistent with TCCC’s stated intent to divest its bottling operations. CCBP is engaged in the bottling and distribution of Coca-Cola products in the Philippines.
AEV said in a disclosure to the stock exchange Wednesday it is in advanced discussions with CCEP on a potential joint acquisition of CCBP under a 60:40 ownership structure between CCEP and AEV.
“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 conglomerate said.
Once completed, the proposed acquisition would enable AEV to expand into branded consumer goods space and further diversify its business portfolio which includes power generation, banking, property, infrastructure and agriculture sector.
“AEV would be well positioned to support CCBP’s growth ambition given the synergies that can be generated from AEV’s other businesses,” the company said.
CCEP, for its part, said the proposed acquisition of CCBPI with AEV “offers a great opportunity to co-acquire an established, well-run business with attractive profitability and growth prospects”.
CCEP said the deal would enable it to build on its successful expansion into Australia, Pacific & Indonesia in 2021, positioning it as the world’s largest Coca-Cola bottler by both revenue and volume.
CCBI operates 19 manufacturing plants and about 50 sales offices and distribution centers across the Philippines.
AEV said it was expecting the deal to close by end of 2023, subject to a number of conditions including satisfactory completion of confirmatory due diligence receipt of AEV and CCEP’s board approvals, parties signing the definitive agreements and certain governmental and regulatory approvals, including clearance from the Philippine Competition Commission.
AEV said, however, there was no certainty at this stage that the proposed acquisition of CCBP would be completed, and as such, further updates would be provided in due course.
The share price of AEV fell 4.5 percent Wednesday to close at P52.05.
AEV said first-half net income declined 11 percent to P10.5 billion on non-recurring losses of P656 million linked to foreign exchange losses.
Power accounted for 72 percent of the total income contributions in the first half, followed by financial services which contributed 25 percent.
Income contributions from real estate, food and Infrastructure were at 3 percent, 1 percent and -1 percent, respectively, it said.
