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Coca-Cola is considering a sale or an IPO for its bottling operations in Africa (IPO). According to Bloomberg, the business may be valued at $6 billion if the stake is sold or IPO’d. Based on the scope of buyer interest, though, this could vary.
The business owns 66.5 percent of Coca-Cola Beverages Africa and is discussing exit strategies with prospective consultants.
Coca-Cola tried to sell the stake in 2017 when it received interest from companies like Heineken NV and Coca-Cola HBC AG. It spent $3.15 billion to purchase Anheuser-Busch InBev out of the African bottling strategic partnership less than a year ago, gaining a majority stake. Kenya, Ethiopia, and Ghana are among the 13 nations served by Coca-Cola Beverages Africa. On the continent, it accounts for over 40% of the company’s beverage sales.
Coca-Cola was the world’s third-largest brand, after Apple and Google, according to Interbrand’s “best strong brand” research from 2015. In 2013, Coke products are marketed in over 200 countries, with consumers ingesting over 1.8 billion servings of the company’s beverages each day. It was placed No. 87 on the Fortune 500 list of the top firms in the United States by total revenue in 2018.
Coca-Cola signed an agreement earlier this year to expand local equity in its bottling operation in South Africa.
Story By: Norvisi Mawunyegah