TURKEY: Coca-Cola Icecek to make Pakistan purchase
Coca-Cola Içecek has lined the purchase of a 50% stake in Coca-Cola Beverages Pakistan (CCBPL).
The Turkey-based Coca-Cola bottler said yesterday (23 June) that its board has approved the acquisition - for US$80m - from subsidiaries of The Coca-Cola Co.
A letter of intent has been signed, CCI said, and the transaction is expected to complete as soon as all local legal procedures are finalised. Following the transaction, both CCI and Coca-Cola will each own equal stakes in CCBPL.
"We are very pleased to be a significant shareholder in CCBPL," said Michael O'Neill, CCI's CEO. "We believe this investment is going to add value to CCI in the medium to long-term as Pakistan offers significant potential for us with its large and young population, growing urbanisation trend, low per capita consumption and growing GDP."
Ahmet Bozer, president of Coca-Cola's Eurasia & Africa Group, added: "Over the years, our partnership with CCI has been a major factor in strengthening our business in Turkey and across the region. CCI's acquisition of a stake in our Pakistan business provides both companies a tremendous opportunity to better serve customers and consumers in Pakistan. We look forward to capitalising on growth opportunities in Pakistan through this valued partnership."
Earlier this month, CCI posted a 15% rise in sales volumes in the first three months to the end of March to 91m unit cases. In value terms, sales in the quarter were up by 22% to TRY391m (US$318.9m). EBIT leapt by 98% to TRY29m, while EBITDA was up by 51% to TRY57m.
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