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Coca Cola Amatil (ASX:CCL) - Managing Director, Alison Watkins - The Market Herald
Managing Director, Alison Watkins
Source: The CEO Magazine
  • Shares in Aussie beverage giant Coca Cola Amatil (CCL) swung into the green this morning following a near $10 billion takeover bid
  • Coca Cola's European counterpart, Coca-Cola European Partners (CCEP), wants to buy the brand's Australian arm for $9.28 billion
  • It's offering $12.75 in cash for every share on offer to nab nearly 70 per cent of the ASX-100 lister
  • In a separate deal, CCEP is looking to buy the remaining 30 per cent stake in Amatil from its parent company, The Coca-Cola Company (TCCC)
  • At this stage, Amatil wants shareholders to take no action but recommends the beverage bottler's European arm be allowed to complete due diligence
  • Following today's shock announcement, Amatil shares spiked 15.7 per cent — trading just shy of its February high and worth $12.43 per share

Shares in Aussie beverage giant Coca Cola Amatil (CCL) swung into the green this morning following a near $10 billion takeover bid.

Coca Cola's European counterpart, Coca-Cola European Partners (CCEP), wants to buy the brand's Australian arm for $9.28 billion.

If the deal goes ahead, CCEP will nab a near-70 per cent stake in Amatil, with the remaining 30.8 per cent to still be held by the brand's international parent, The Coca-Cola Company (TCCC).

However, the European business is also considering a deal which will see it snatch up TCCC's stake in Amatil, giving it full control of the Aussie company.

As a result, both companies entered a co-operation letter, which means CCEP has 30.8 per cent voting power heading into the deal.

Coca Cola's European arm is offering $12.75 cash for every Amatil share — an 18.6 per cent premium to the company's last closing price on October 23. On Friday, CCL shares were worth $10.75 by the bell.

At this stage, Amatil Chair Ilana Atlas said shareholders should take no action, although the company's independent directors want to unanimously recommend the offer.

" ... it is now in the best interests of independent shareholders to allow CCEP to undertake confirmatory due diligence and further negotiate transaction documentation in order to determine if a binding proposal can be presented to independent shareholders," Ilana stated in this morning's announcement.

Currently, the beverage bottler's ASX-listed business operates across six counties within the Asia Pacific. It oversees 32 production facilities in Australia, New Zealand, Fiji, Samoa, Indonesia and Papua New Guinea (PNG).

Following today's shock announcement, Amatil shares spiked 15.6 per cent — trading just shy of its February high and worth $12.43 per share at 12:23 pm AEDT.


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