Coke Europe increases offer for Coca-Cola Amatil

The European arm of drinks giant Coca Cola has upped its offer price in a takeover bid for local operator Coca-Cola Amatil following increased pressure from analysts and shareholders.

Coca Cola Amatil announced on Monday morning that Coca-Cola European Partners (CCEP) had upped its offer by 75 cents per share to $13.50, declaring the proposal its “best and final” offer.

Coca Cola Amatil announced on Monday morning that Coca-Cola European Partners (CCEP) had upped its offer by 75 cents per share to $13.50, declaring the proposal its “best and final” offer.
Coca Cola Amatil announced on Monday morning that Coca-Cola European Partners (CCEP) had upped its offer by 75 cents per share to $13.50, declaring the proposal its “best and final” offer.Credit:Bloomberg

This new offer boosts the total value of CCEP’s takeover bid to $11 billion and comes after Coca Cola Australia forecast a better-than-expected half-year result in January, with earnings for the 2020 calendar year set to come in at $550.7 million.

Coca Cola Amatil’s shares last traded at $13.13 and have reached as high as $13.24 in the past month following heightened calls by analysts for CCEP to lift its offer price by at least 50 cents.

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CCEP said it had received legal and financial advice about the improved fortunes of the Australian operations including on the fundamental value of the business, the company’s recent trading update, interest rates and shareholder feedback.

Coca-Cola Amatil chairman Illana Atlas said she was pleased to see the higher offer price from CCEP.

“The economic outlook for Australia and New Zealand has improved since the announcement of the original CCEP proposal and recent trading validates our strategy and demonstrates our strong recovery,” she said.

“The value of Amatil has increased and we are pleased that CCEP has acknowledged this in increasing its proposed cash consideration to Independent Shareholders.”

“The RPC and the Group Managing Director unanimously consider that the Revised Scheme, including the revised price, is in the best interests of Independent Shareholders.”

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Source: Thanks smh.com