Coca-Cola Co. is getting ready to be listed on two stock exchanges, following a previous decision to postpone these plans.
According to a report by Bloomberg, the international beverage giant is contemplating a dual listing for Coca-Cola Beverages Africa in both Johannesburg and Amsterdam.
The business could be valued at over $8 billion, although specifics of the valuation remain unclear, the sources cautioned, speaking anonymously due to the information’s sensitivity.
At present, the bottling entity is predominantly owned by Coca-Cola, with a 66.5% stake, while the remaining 33.5% is held by Gutsche Family Investments. The informants mentioned that discussions are still in the early stages and the details of the offering may undergo modifications.
The spokesperson for Coca-Cola refrained from providing additional details based on reports, citing the company’s prior affirmation of its intent to list Coca-Cola Beverages Africa once market conditions improve. Meanwhile, representatives for Gutsche Family Investments redirected inquiries to Coca-Cola.
The unit’s initial public offer (IPO) plans were first announced in 2021, outlining the intention to divest a portion of its stake. However, due to subsequent developments, the scheme was postponed in the following year.
Coca-Cola Beverages Africa is ranked as the eighth largest Coca-Cola bottling partner worldwide in terms of revenue and holds the title of being the largest on the African continent. It is responsible for around 40% of all Coca-Cola sales volumes in Africa.
Backstory
Last year, during its third-quarter earnings report, the company reiterated its commitment to eventually making Coca-Cola Beverages Africa (CCBA) public, contingent upon more favorable market conditions.
In 2021, the company announced intentions to initiate the listing process for CCBA within an 18-month timeframe, proposing a primary listing in Amsterdam alongside a secondary listing on the JSE.
However, in 2022, Coca-Cola opted to postpone its plans for an estimated $3 billion IPO of CCBA, citing market volatility primarily stemming from the Russia-Ukraine conflict.
This geopolitical tension led to diminished investor confidence and a downturn in IPO activity globally. Had the listing proceeded as planned, the flotation of CCBA would have represented the largest IPO on the JSE since at least 2016, providing a significant lift for the struggling index.
Coca-Cola Launches Cutting-Edge Recycling Facility In Namibia
A few days ago Coca-Cola Beverages Africa unveiled a new PET flaking plant in Okahandja, Namibia, which will double the capacity of the only mechanical recycler of plastic waste in the country. The facility, which will be operated alongside Plastic Packaging, follows a N$24 million (€1.2 million) investment.
The plant was officially inaugurated by the Minister of Environment, Forestry and Tourism, Pohamba Shifeta.
“The Coca-Cola system aims to drive systemic change through a circular economy for packaging,” commented CCBA chief public affairs, communication, and sustainability officer, Tshidi Ramogase. “We are leading the industry to help collect and recycle a bottle or can for every one we sell by 2030.”
The completion of this cutting-edge recycling facility will enable Namibia Polymer Recyclers (NPR), a subsidiary of Plastic Packaging, to recycle up to 500 tons per month.
The recycling plant transforms discarded beverage bottles made from PET material into PET flakes with an international market value. The flaking process of post-consumer PET bottles involves sorting, shredding it into PET flakes, hot-washing, and drying of flakes, which are then sent for further processing into recycled PET pellets and other end-uses.
This reduces the need to use virgin PET while diverting waste from landfills and the environment.
About Coca-Cola Africa
CCBA is the 8th largest Coca-Cola bottling partner in the world by revenue, and the largest on the continent. It accounts for over 40% of all Coca-Cola products sold in Africa by volume. With over 18,000 employees in Africa, CCBA services more than 720,000 customers with a host of international and local brands.
The group was formed in July 2016 after the successful combination of the southern and east Africa bottling operations of the non-alcoholic ready-to-drink beverages businesses of The Coca-Cola Company, SABMiller plc, and Gutsche Family Investments. CCBA shareholders are currently:
The Coca-Cola Company 66.5% and Gutsche Family Investments 33.5%. CCBA operates in 15 countries, including its six key markets of South Africa, Kenya, Ethiopia, Uganda, Mozambique and Namibia, as well as Tanzania, Botswana, Ghana, Zambia, the islands of Comoros and Mayotte, Eswatini, Lesotho, and Malawi.
