THE COCA-COLA COMPANY Coca-Cola HBC Holdings B.V. entered into an agreement to acquire a 42% stake in The Coca-Cola Bottling Company of Egypt from The Coca-Cola Company (NYSE:KO) for EGP 2.3 billion on August 12, 2021. The consideration includes a cash consideration payable at completion of approximately EGP 1.9 billion and of a convertible loan issued to The Coca-Cola Company by Coca-Cola Bottling Company of Egypt S.A.E. convertible at its maturity in 2022 into new Cola Bottling Company of Egypt S.A.E. shares at fair market value, for a cash consideration payable at the time of its transfer equal to the outstanding principal amount and unpaid interest thereon (which currently aggregates to approximately approximately EGP 340 million. In the related transaction, Coca-Cola HBC Holdings BV agreed to acquire 52.7% of The Coca-Cola Bottling Company of Egypt from MAC Beverages Limited for EGP 4.8 billion.
Coca-Cola HBC intends to finance the Proposed Transactions primarily from its cash resources and incremental use of existing debt facilities, as required. For the year ended December 31, 2020, The Coca-Cola Bottling Company of Egypt recorded net sales revenue of EGP 7.4 billion and total assets as EGP 5.2 billion. Completion of the Transaction and the transfer of the Convertible Loan is expected to be subsequent to and conditional upon, completion of the MBL Transaction and, therefore, is expected to take place shortly after the MBL Transaction in late Q4 2021 or, in the case of the TCCC Transaction only, at the beginning of Q1 2022.
As of November 3, 2021, the transaction is expected to close by Q1 2022. Low-single digit EPS accretion expected in the near term, with opportunity to create further value through progressively moving CCBCE's margins towards the Coca-Cola HBC group average over time. UBS AG London Branch acted as financial advisor to Coca-Cola HBC Holdings B.V. Vanessa K. Blackmore and Nikolaos G. Andronikos of Sullivan & Cromwell LLP acted as legal advisor to Coca-Cola HBC Holdings B.V. Zulficar & Partners Law Firm acted as legal advisor to Coca-Cola HBC Holdings B.V. Latham & Watkins provided competition law advice, while Deloitte LLP provided financial and tax due diligence services.
Clifford Chance LLP acted as legal advisor to The Coca-Cola Company. Matouk Bassiouny & Hennawy acted as legal advisor to The Coca-Cola Company. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to The Coca-Cola Company.
As of January 13, 2022 Transaction is expected to occur later this month.
