The Coca-Cola Company could see its financial interest in Coca-Cola Amatil vanish as a result of a change to the share buy-up instigated by the business’ European arm, according to the AFR.
The global confectionary giant initially agreed to sell one-third of its 30.8 per cent interest to Coca-Cola European Partners, with the remaining two-thirds to be converted from shares in Amatil to shares in CCEP – or to be paid for in cash.
CCEP confirmed late last week it will pay $9.57 per share for the initial third of shares, and $10.75 per share for the remainder – meaning the US business will have no holdings in the Australian arm, and will not gain more voting power in CCEP’s operations moving forward.
Amatil shareholders will vote on the scheme of arrangement on April 16.
The decision, according to the AFR, is due to CCEP’s strong share price, low levels of debt, and unwillingness to dilute its own shareholder’s value proposition by issuing shares to the Atlanta-based company.
CCA is one of the region’s largest bottlers and distributors of ready-to-drink non-alcoholic beverages, liquor and coffee in the Asia-Pacific. Besides the Australian market, it has a heavy presence in Indonesia and the Pacific Islands.