Coca-Cola is gearing up for a potential initial public offering (IPO) of its African bottling business, which it previously put on hold, according to sources familiar with the matter.
The beverage giant is contemplating a dual listing for Coca-Cola Beverages Africa in Johannesburg and Amsterdam, sources said. It may aim for a valuation of more than $8 billion for the business, these sources added, requesting anonymity due to the sensitive nature of the information.
Coca-Cola currently holds a 66.5% stake in the bottling unit, while the remaining 33.5% is owned by Gutsche Family Investments. Discussions are still in the early stages, and the specifics of the offering could undergo changes, the sources cautioned.
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A spokesperson for the company declined to comment beyond a previous statement, affirming the company’s commitment to listing Coca-Cola Beverages Africa as a public entity through an IPO once market conditions improve. Gutsche Family Investments redirected queries to Coca-Cola.
In 2021, the company initially announced its intention to divest a portion of its shareholding in the unit through an IPO. However, the plan was postponed the following year.
Coca-Cola Beverages Africa ranks as the eighth largest bottling partner globally by revenue and stands as the largest on the African continent, responsible for approximately 40% of all Coca-Cola volumes sold in Africa. The unit currently operates in approximately 15 African countries, including Kenya, Ethiopia, Namibia, and Tanzania, with a workforce exceeding 18,000 people, according to its website.
The potential IPO underscores the company’s strategic moves to unlock value from its bottling operations in Africa, capitalizing on the region’s growing consumer market and expanding its footprint across the continent. As discussions progress, further details regarding the IPO and its impact on it’s operations in Africa are expected to emerge.