IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Coca-Cola European Partners - Coca-Cola Amatil: Non-Binding Proposal

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<p><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> is one of the largest bottlers and distributors of ready-to-drink non-alcoholic and alcoholic beverages and coffee in the Asia Pacific region. <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  has made a non-binding offer to acquire 69.2% of the issued share capital of Amatil, which is held by shareholders other than <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>/TCCC i.e. independent shareholders, through a scheme of arrangement. Independent shareholders will receive A$12.75 per share in cash less any final 2H20 dividends paid. The offer price represents a premium of 23% to the 1-week VWAP. TCCC’s 30.8% shareholding in Amatil will be separately acquired in two or more tranches on less favourable terms to independent shareholders. The transaction is targeted for a 1Q20 completion. </p><div class="content-highlight"><p>Unlike previous takeover offers for Amatil, this proposal comes with TCCC’s backing. The key next step is for CCEP and Amatil to enter into a binding agreement after a short due diligence period. The scheme of arrangement will require Amati shareholder approval. Overall, we believe that the offer price is attractive and anticipate shareholder approval for the scheme. </p></div>

Coca Cola Amatil (CCL AU) is one of the largest bottlers and distributors of ready-to-drink non-alcoholic and alcoholic beverages and coffee in the Asia Pacific region. Coca-Cola European Partners (CCEP US)/CCEP  has made a non-binding offer to acquire 69.2% of the issued share capital of Amatil, which is held by shareholders other than Coca Cola Co (KO US)/TCCC i.e. independent shareholders, through a scheme of arrangement. Independent shareholders will receive A$12.75 per share in cash less any final 2H20 dividends paid. The offer price represents a premium of 23% to the 1-week VWAP. TCCC’s 30.8% shareholding in Amatil will be separately acquired in two or more tranches on less favourable terms to independent shareholders. The transaction is targeted for a 1Q20 completion. Unlike previous takeover offers for Amatil, this proposal comes with TCCC’s backing. The key next step is for CCEP and Amatil to enter into a binding agreement after a short due diligence period. The scheme of arrangement will require Amati shareholder approval. Overall, we believe that the offer price is attractive and anticipate shareholder approval for the scheme. 

Coca-Cola European Partners’ Takeover Bid for Coca-Cola Amatil