The Coca-Cola Co has added details to yesterday’s confirmation of its plan to launch an IPO for its bottler unit in Africa.
Coinciding with the release of results for the first quarter, Coca-Cola said yesterday that it intends to list part of its holding in Coca-Cola Beverages Africa. In a separate statement, the group did not provide details of how much of its 66.5% stake will go towards the IPO, but that the move would occur “within the next 18 months” with shares to be listed in Amsterdam and Johannesburg.
The move forms part of Coca-Cola’s strategy to concentrate more on brand-building and innovation.
“The Coca-Cola Co sees Africa as a key growth market and views a separate listing of CCBA as an opportunity to deliver a broad, supportive, long-term investor base for the ongoing development of the business,” said group president for Africa, Bruno Pietracci.
CCBA commenced operations in mid-2016 as a joint venture between Coca-Cola, Coca-Cola Sabco and SABMiller. The subsequent takeover of SAB by Anheuser-Busch InBev resulted in Coca-Cola exercising its put option later in the year. The soft drinks giant went so far as to explore a sale of its stake two years ago, but decided to retain control after negotiations failed to secure a buyer.
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