The acquisition was announced on 12 August 2021, with Coca-Cola HBV Holdings acquiring the business from MAC Beverages Limited and certain of its affiliated parties for cash consideration of $304m, subject to certain balance sheet adjustments. An additional earnout amount may be payable based on CCBCE’s financial performance in 2021.
The acquisition gives Coca-Cola HBC access to the second-largest non-alcoholic ready-to-drink market in Africa by volume, building on existing scale in Africa and increasing Coca-Cola HBC’s exposure to high growth geographies. Coca-Cola HBC eyes up ‘significant opportunities’ to take its route-to-market capabilities and 70 years of experience in emerging markets to increase penetration of The Coca-Cola Company’s brand portfolio and drive category leadership.
Zoran Bogdanovic, CEO of Coca-Cola HBC, said: “We are excited to welcome CCBCE to our group. We see great potential for this business to unlock considerable opportunities in the NARTD category in Egypt. We appreciate the trust placed in us by The Coca-Cola Company and MBL, and are ready to become part of the Coca-Cola system growth story in Egypt.”
Abdul Galil Besher, the current executive chairman of CCBCE, will remain as non-executive chairman of CCBCE. The transaction with MBL also involves the potential acquisition by CCH Holdings, at the same price per share to be paid to MBL, of another approximately 2.8% stake from certain other minority shareholders pursuant to agreements to be entered into in due course.
In addition, a convertible loan issued to a wholly-owned affiliate of The Coca-Cola Company by CCBCE, convertible into new CCBCE shares, has been transferred to CCH Holdings for a cash consideration of approximately $22m (which is equal to its outstanding principal amount and unpaid interest).
Completion of the acquisition by CCH Holdings of approximately 42% of CCBCE from the TCCC Seller, also announced on 12 August 2021, is expected to occur later this month, bringing CCH Holdings’ total ownership in CCBCE to 94.7%.