Coca-Cola İcecek (CCI), the Turkish beverage giant, has made a strategic move to bolster its presence in the South Asian market by acquiring Coca-Cola Bangladesh Beverages Ltd (CCBB) for $130 million.
The share purchase agreement (SPA) was signed between CCI, its wholly-owned subsidiary CCI International Holland B.V. (CCIHBV), and a subsidiary of The Coca-Cola Company (TCCC), according to reports from UNB. The deal involves CCIHBV becoming the primary direct shareholder by acquiring the entire 100% shares in CCBB.
CCBB plays a crucial role in Bangladesh’s beverage industry, producing, selling, and distributing both sparkling and still brands under The Coca-Cola Company umbrella.
Under the agreement, CCI will acquire CCBB’s complete shareholding at an equity value determined by subtracting CCBB’s estimated net financial debt from an enterprise value of $130 million. A post-closing price adjustment mechanism will be implemented after a comprehensive closing audit to determine CCBB’s precise net financial debt.
Funding for the acquisition is expected to come from CCIHBV’s existing cash resources, with a minimal impact on CCI’s net leverage. This move reflects CCI’s strategy to capitalize on growth opportunities in emerging markets and expand its global footprint.
The acquisition is subject to regulatory approvals and customary closing conditions, with expectations to strengthen CCI’s position as a key player in the beverage industry in the Indian subcontinent.
Karim Yahi, CEO of CCI, expressed enthusiasm about the acquisition, highlighting it as a significant opportunity to enter a market with substantial growth potential. He emphasized that CCI’s core capabilities would drive growth and value in Bangladesh, while also diversifying CCI’s geographical footprint and aligning it more closely with TCCC.