Coca-Cola European Partners (NYSE:CCEP) Enters Agreement To Buy Coca-Cola Amatil Limited Stake Except for The Coca-Cola Company-Held Stake

Coca-Cola European Partners (NYSE:CCEP) has signed binding agreements for the acquisition of Coca-Cola Amatil Limited (CCL) which includes through a Board recommended arrangement scheme.

CCEP to buy 69.2% CCL’s entire issued share capital

In addition to the announcement on October 25, 2002, CCEP has also announced the completion of confirmatory due diligence and signed a binding Scheme Implementation Deed with CCL. As per the terms of the Scheme Implementation Deed, CCEP will buy 69.2% of CCL’s entire issued share capital held by shareholders besides The Coca-Cola Company. The company will acquire the stock at $12.75 per share in cash according to a scheme of arrangement.

CCL’s Board of Directors except for The Coca-Cola Company nominees have affirmed that they plan to commend the Scheme to shareholders unanimously. This will be subject to the independent expert conclusions that the Scheme is fair in the absence of a superior proposal and will be at the best interest of shareholders. The Scheme will also be subject to customary conditions that include CCL stockholder approval, no material adverse change, court approval, New Zealand Overseas Investment Office approval and Australian Foreign Investment Review Board approval.

CCEP to acquire The Coca-Cola Company’s Stake in CCL

The Coca-Cola Company has signed a Co-operations and Sale Deed with CCEP according to the acquisition of KO’s 30.8% stake in CCL. This is upon the implementation of the Scheme with CCL. As per the Co-operation and Sale Deed, The Coca-Cola Company will receive A$9.57 per share for their 10.8% interest in CCL. The remaining 20% shareholding in CCL will be offered to CCEP at A$10.75 per share in cash or a share plus CCEP stock arrangement at an agreed conversion.

This is a strategic move that will create a platform that will expedite growth and returns headed by CCEP’s experienced and proven management team. It will bring together the two top global Coca-Cola bottlers offering access to developed and complementary markets. Also, this will create a balanced and broader geographic footprint which will double CCEP’s consumer reach.