Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Growing Investor Opposition to CCEP's Take Over Offer: Will There Be a Bump?

A Generous Offer By Coca-Cola European Partners

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<ul>
<li>In October 2020, <a href="https://www.smartkarma.com/entities/coca-cola-amatil-ltd" target="_blank" data-smartkarma-citation="entities:675:1" rel="noopener">Coca Cola Amatil (CCL AU)</a> (CCL), one of the largest bottlers and distributors of <a href="https://www.smartkarma.com/entities/coca-cola-co-the" target="_blank" data-smartkarma-citation="entities:979:1" rel="noopener">Coca Cola Co (KO US)</a>’s range of products, announced a non-binding indicative proposal from <a href="https://www.smartkarma.com/entities/coca-cola-european-partners" target="_blank" data-smartkarma-citation="entities:29709:1" rel="noopener">Coca-Cola European Partners (CCEP US)</a> (CCEP) to acquire 69.2% of the share capital of CCL (at A$ 12.75 per share in cash, adjusted for 2H20 dividends paid), held by shareholders other than The Coca-Cola Company (KO).</li>
<li>Financial advisors to the deal are Rothschild &amp; Co, Credit Suisse and UBS.</li>
<li>The takeover offer was at a 23% premium to CCL‘s undisturbed one-week volume-weighted price. In our previous notes, we deemed that the offer price was reasonable considering CCL’s somewhat weak fundamentals.</li>
</ul><p><a href="https://www.smartkarma.com/insights/a-generous-offer-by-coca-cola-european-partners" target="_blank" data-smartkarma-citation="insights:44693" rel="noopener">A Generous Offer By Coca-Cola European Partners</a></p><p><a href="https://www.smartkarma.com/insights/growing-investor-opposition-to-ccep-s-take-over-offer-will-there-be-a-bump" target="_blank" data-smartkarma-citation="insights:45143" rel="noopener">Growing Investor Opposition to CCEP's Take Over Offer: Will There Be a Bump?</a></p><ul>
<li>However, a number of institutional investors pushed back against Coca-Cola European Partners’ takeover offer, suggesting that the takeover offer undervalues the company.</li>
<li>Yesterday, news emerged that Citigroup expects an improved takeover offer for CCL in the next 6-8 weeks.</li>
</ul>


In October 2020, Coca Cola Amatil (CCL AU) (CCL), one of the largest bottlers and distributors of Coca Cola Co (KO US)’s range of products, announced a non-binding indicative proposal from Coca-Cola European Partners (CCEP US) (CCEP) to acquire 69.2% of the share capital of CCL (at A$ 12.75 per share in cash, adjusted for 2H20 dividends paid), held by shareholders other than The Coca-Cola Company (KO).
Financial advisors to the deal are Rothschild &amp; Co, Credit Suisse and UBS.
The takeover offer was at a 23% premium to CCL‘s undisturbed one-week volume-weighted price. In our previous notes, we deemed that the offer price was reasonable considering CCL’s somewhat weak fundamentals.
A Generous Offer By Coca-Cola European PartnersGrowing Investor Opposition to CCEP's Take Over Offer: Will There Be a Bump?
However, a number of institutional investors pushed back against Coca-Cola European Partners’ takeover offer, suggesting that the takeover offer undervalues the company.
Yesterday, news emerged that Citigroup expects an improved takeover offer for CCL in the next 6-8 weeks.


Coca-Cola Amatil Takeover Offer: A Bump Forthcoming?