Coca-Cola's bottler is heading to the JSE - in what could be a R120 billion listing

accreditation
0:00
play article
Subscribers can listen to this article
Coca-Cola Beverages Africa operates in 14 territories on the continent.
Coca-Cola Beverages Africa operates in 14 territories on the continent.
Getty Images/Justin Sullivan

Coca-Cola is seeking a value of €7 billion (~R120 billion) for Coca-Cola Beverages Africa when it lists the bottler next year, according to people familiar with the matter. 

The soft drinks giant is poised to appoint Bank of America, Morgan Stanley and Standard Bank to run the initial public offering, the people said, asking not to be identified discussing confidential information. More banks could get added to the roster in the coming weeks, the people said.

Deliberations are ongoing and the final timing and size of the IPO will depend on investor appetite and market conditions, according to the people. A representative for Coca-Cola referred a request for comment to the Africa business. Representatives for Bank of America, Coca-Cola Beverages Africa, Morgan Stanley and Standard Bank declined to comment.

Coca-Cola holds 66.5% of Coca-Cola Beverages Africa, having paid $3.15 billion (~R46.58 billion) in 2016 to buy Anheuser-Busch InBev out of the African bottling joint venture.

It tried to offload the stake a year later and drew interest from the likes of Heineken and Coca-Cola HBC, Bloomberg News reported at the time. In April, Coca-Cola said it was working with Rothschild & Co. on an IPO of the business, with shares to be listed in Amsterdam and Johannesburg. 

Coca-Cola Beverages Africa operates in 14 territories on the continent and accounts for about 40% of the Atlanta-based company’s drinks sold there, according to its website. Coca-Cola concluded a deal earlier this year to increase local shareholding in its South Africa bottling unit.

Companies have raised about $73 billion from IPOs on European exchanges this year, according to data compiled by Bloomberg, with the deals outpacing stake sales for the first time since 2018.

- With assistance from Loni Prinsloo and Brett Pulley.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.07
-1.3%
Rand - Pound
19.58
-0.6%
Rand - Euro
16.92
-0.8%
Rand - Aus dollar
11.12
-1.3%
Rand - Yen
0.12
-0.8%
Gold
1,819.93
-0.2%
Silver
20.82
-1.6%
Palladium
1,878.01
+0.3%
Platinum
913.26
+0.2%
Brent Crude
115.09
+1.7%
Top 40
61,789
+0.4%
All Share
68,058
+0.3%
Resource 10
66,069
+0.9%
Industrial 25
80,452
+0.3%
Financial 15
15,394
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot