Coca-Cola In Deal To Buy AB InBev's 54.5% Stake In Coca-Cola Beverages Africa

(RTTNews) - Beverage giant Coca-Cola Co. (KO) and Belgian brewer Anheuser-Busch InBev NV or AB InBev (BUD, AHBIF.PK) on Wednesday said they have reached an agreement regarding the transition of AB InBev's 54.5% equity stake in Coca-Cola Beverages Africa or CCBA for $3.15 billion, after customary adjustments.

CCBA includes the countries of South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte and Comoros.

In addition, the companies have reached an agreement in principle for Coca-Cola to acquire AB InBev's interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras for an undisclosed amount.

The transactions are subject to the relevant regulatory and minority approvals and are expected to close by the end of 2017.

Coca-Cola plans to hold all of these territories temporarily until they can be refranchised to other partners. Coca-Cola's intent is to account for the acquired stakes as a discontinued operation for reporting purposes.

Muhtar Kent, Chairman and CEO of Coca-Cola, said, "We will move forward with our long-term strategic plan in these important growth markets. We are continuing negotiations with a number of parties who are highly qualified and interested in these bottling territories and look forward to refranchising these territories as soon as practical following regulatory approval."