Soft drinks giant Coca-Cola Amatil tentatively backs $9.2b bid by European arm
Europe’s Coca-Cola has launched a $9.2 billion takeover bid for Australia’s Coca-Cola Amatil, sending the soft drinks giant’s shares soaring.
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The world’s biggest Coca-Cola bottler has lobbed a $9.2 billion conditional takeover offer at Australia’s Coca-Cola Amatil, which the company has tentatively backed, sending its shares soaring.
Speculation mounted last week when Amatil went into a trading halt that it was poised to buy beer brands Stella Artois and Beck’s from Japan’s Asahi.
But on Monday, Amatil announced Coca-Cola European Partners (CCEP) had offered it $12.75 per share – a price its stock last eclipsed in February before the COVID-9 pandemic dented its earnings.
Amatil shares leapt from $12.32 to $12.50 in morning trade before settling back to $12.38 in the early afternoon.
Sydney-headquartered Amatil said it had previously fielded offers from CCEP.
Based on the current price and conditions of the proposal, it was in the best interests of independent shareholders to allow CCEP to conduct due diligence to determine if a binding deal could be offered, Amatil chair Ilana Atlas said.
“Amatil notes that there is no certainty that the proposal will result in an agreed transaction and will continue to keep the market informed of any material developments,” the target said.
London-headquartered CCEP is listed on four stock exchanges and operates in 13 countries, while Amatil operates in Australia, New Zealand, Indonesia, Papua New Guinea, Fiji and Samoa.
Analysts have labelled the offer opportunistic, saying it undervalues Amatil, which traded as high as $15.14 in 2013.
The soft drinks giant was hit hard by business closures and limited trading during the health crisis, posting an $8.8 million half-year net loss in August – an about-face from its $168 million net profit for the previous corresponding period.
Amatil released a trading update on Monday, showing September quarter revenue was down 4.2 per cent compared with the same period last year.
For the year to date, the fall was at 7.6 per cent, but an improvement on the first half revenue slide of 9.2 per cent, the company said, adding it was well placed to capitalise on the all-important Christmas trading period.
Originally published as Soft drinks giant Coca-Cola Amatil tentatively backs $9.2b bid by European arm