Coca-Cola Europacific, AEV Sign LoI To Buy Coke's Philippines Bottling Business In $1.8 Bln Deal

(RTTNews) - Coca-Cola Europacific Partners plc or CCEP (CCEP, CCEP.L) announced Wednesday that it has entered into a Letter of Intent to acquire Coca-Cola Co.'s (KO) bottling business in Philippines.

CCEP has teamed with Aboitiz Equity Ventures Inc. for the joint purchase of Coca-Cola Beverages Philippines, Inc. or CCBPI in a $1.8 billion deal, on a debt free cash free basis. The consideration would be paid in cash, which would have a modest impact on CCEP's leverage.

The firm is in advanced discussions with AEV regarding a potential joint transaction, which may lead to the acquisition of CCBPI from KO, based on a 60:40 ownership structure.

Following the acquisition, the business would be governed by a Board of 5 members, in which three will be appointed by CCEP and two by AEV. CCEP would also appoint the CEO.

The deal is consistent with Coca-Cola's stated intent to divest bottling operations. CCEP expects the proposed acquisition would position it as the world's largest Coca-Cola bottler by both revenue and volume.

The deal is subject to a number of conditions, including satisfactory completion of due diligence, among others.

The potential transaction, if entered into, would be expected to close around the end of fiscal 2023.

In the deal, Rothschild & Co are acting as financial adviser to CCEP. Slaughter and May and Villaraza & Angangco are acting as legal counsel to CCEP.