In 2021, Coca-Cola made headlines when it expressed its intention to divest a portion of its shareholding in Coca-Cola Beverages Africa (CCBA) through an initial public offering (IPO). However, the plan was subsequently shelved. Now, the beverage giant is exploring an alternative route: a dual listing for CCBA on both the Johannesburg Stock Exchange (JSE) and the Amsterdam Stock Exchange.
Valuation and Potential Impact
Sources close to the matter have hinted that the potential valuation for CCBA could exceed a staggering US$8 billion. If this dual listing materializes, it would mark the largest offering on the JSE since at least 2016, providing a much-needed boost to the struggling index. Currently, Coca-Cola holds a commanding 66.5% stake in CCBA, while the remaining 33.5% is owned by Gutsche Family Investments.
Preliminary Discussions
While the idea of a dual listing is gaining traction, discussions remain in their early stages. The specifics of the offering are subject to change as stakeholders weigh the pros and cons. Market conditions, investor appetite, and regulatory considerations will all play a crucial role in shaping the final decision.
CCBA: A Vital Player in Africa
Coca-Cola Beverages Africa is not only a significant player in the global Coca-Cola ecosystem but also the largest bottling partner on the African continent. It accounts for approximately 40% of all Coca-Cola volumes sold in Africa. Operating in around 15 African countries, including Kenya, Ethiopia, Namibia, and Tanzania, CCBA boasts a workforce of over 18,000 employees.
As the company navigates these strategic waters, the eyes of investors and industry observers remain fixed on the unfolding developments. The dual listing could potentially reshape the African beverage landscape and unlock new opportunities for growth and expansion. Stay tuned for further updates as CCBA’s journey continues.
Source: BusinessInsider