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Coca-Cola said to sell R10bn SA bottling stake

The move helps the US drinks giant comply with the government’s empowerment policies.
Image: Henner Frankenfeld, Bloomberg

Coca-Cola Co. is planning to sell a stake in its South African bottling unit to local investors in a deal worth about R10 billion, in line with an agreement with local regulators, according to people familiar with the matter.

The move would help the U.S. drinks giant comply with South Africa’s policies that prescribe minimum holdings in companies for Blacks and other groups that faced economic discrimination under apartheid, said the people. The deal was a condition of Coca-Cola’s 2016 buyout of former partner SABMiller, now part of brewer Anheuser-Busch InBev NV, they said.

Coca-Cola Beverages South Africa said Friday its broad-based black ownership will be increased to 20%, without giving detail on the value of the deal. Employees will have control of an approximate 15% stake, up from 5%, with the balance owned by outside investors. The plan was revised from an earlier proposal to sell a larger stake and has been agreed with regulators, according to a spokeswoman.

Rothschild & Co is an adviser on the deal, the people said.

The broader Coca-Cola Beverages Africa is based in the coastal town of Port Elizabeth and serves 12 countries, including Kenya, Ethiopia and Ghana, according to the website. It accounts for about 40% of the Atlanta-based company’s drinks sold on the continent.

The value of the entire business is about R45 billion, the people said, meaning the new investors are getting a discounted price. The deal will help benefit employees and other partners as well as non-White investors, they said, though the exact structure is as yet unclear.

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I am tired of hearing this. Also, Can’t even watch sport without a racial situation. Not sure how many people are benefiting from these type of situations financially. Are there not better ways to tackle racism, then financially?

BBEE alert in Luthuli House!

A rush to the door for “consultants”, “brand facilitators”, non-executive director positions, dust off those off shelf companies, re-connect with long lost cadres and download brochures for BMW’s and Mercedes Benz’s.

Yipeee!!

I see you don’t like my comment that Luthuli House is collectively rubbing its hands at this news.

Stopped buying CocaCola products a decade ago

Expensive sugared colored tap water

Remember Dasani bottled water? That bottle of tap water packaged as mineral water

As for Valpre… I always ask for AQuellé

End of comments.

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