Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners Plc (CCEP) have entered into a definitive agreement to acquire Coca-Cola Beverages Philippines, Inc. (CCBPI) from The Coca-Cola Company. <\/p>\n\n\n\n
This acquisition features a 60:40 ownership structure, with CCEP holding 60% and AEV holding 40%. CCEP, AEV’s partner on this acquisition, has demonstrated success in their expansion into other countries like Australia and Indonesia. The valuation of CCBPI stands at US$1.8 billion, calculated on a debt-free, cash-free basis. The ultimate cash consideration is subject to adjustments upon the completion of the transaction. <\/p>\n\n\n\n
At the closing, a shareholders’ agreement encompassing comprehensive governance terms will be implemented. The success of this acquisition hinges on meeting customary closing conditions, including obtaining clearance from the Philippine Competition Commission. The transaction is expected to be concluded in the 1st quarter of 2024.<\/p>\n\n\n\n
Our View: <\/strong>The transaction aligns with AEV’s strategic goal of expanding and diversifying its retail portfolio. The conglomerate is seeking to lessen its dependence on the power generation businesses, which constituted 62% of its revenues in 2022.\\ <\/p>\n\n\n\n Prior to the CCBPI acquisition, AEV previously acquired Gold Coin, Citigroup\u2019s consumer banking business, and a controlling stake in Mactan-Cebu International Airport. The enterprise value for the Coca-Cola Beverages Philippines Inc. (CCBPI) acquisition is set at $1.8 billion on a debt-free cash-free basis. <\/p>\n\n\n\n CCBPI has over 9,000 employees and 73 production lines serving more than 1 million outlets. It holds a significant presence in the Philippines, ranking as Coca- Cola’s fourth-largest market after China, India, and Japan. In FY22, CCBPI reported approximately $1.71 billion in revenue and $901 million in profit before tax.<\/p>\n\n\n\n