As expected the European bidder for Coca Cola Amatil has upped its offer price following pressure from analysts and shareholders and the deal is done, barring any unforeseen events.
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.
That should be enough to win control and ensure that this week’s full year result from Coca Cola Amatil is the last of its kind.
The 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 result in January, with earnings for the 2020 calendar year set to come in at $550.7 million.
Coca Cola Amatil’s shares closed at $13.13 on Friday and have gone as high as $13.24 in the past month as punters took a stand on a higher price following stepped up pressure from analysts and shareholders for the offer to be increased.
CCEP said on Monday 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 in the statement that 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.”
In other words, all over bar the shouting.
