Source: Sharecast
Under the terms of the deal, the London-listed drinks firm will buy a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6bn, valuing the Johannesburg-based business at $3.4bn.
It will also enter into an option agreement to buy the remaining 25% from CCBA’s owners, The Coca-Cola Company and Gutsche Family Investments (GFI), once the deal completes, and pursue a secondary listing on the Johannesburg Stock Exchange.
The tie-up will create the second-largest Coca-Cola bottling partner by volume globally, with leading positions across Africa and Europe, CCH said.
CCBA currently operates in 14 African markets, representing around 40% of Coca-Cola system volumes sold across the continent.
Zoran Bogdanovic, CCH chief executive, said: "Having established our business in Nigeria nearly 75 years ago, and with our successful acquisition and integration of the Egypt business three years ago, we have a deep understanding of the compelling proposition Africa presents.
"It has a sizeable and growing consumer base, and there are significant opportunities to increase per capital consumption."
CCH also posted third-quarter numbers on Tuesday, showing organic revenue growth of 5% and volume growth of 1.1%, led by strong performances in its sparkling and energy divisions
Looking to the full year, CCH reaffirmed its full-year guidance.
The blue chip is currently forecasting organic revenue growth at the top of between 6% to 8%, and organic growth in earnings before interest and tax at the top of between 7% to 11%.
It said that while the macroeconomic and geopolitical backdrop was set to remain "challenging and unpredictable", it continued to have "high confidence" in the business.