Coca-Cola Co. is gearing up for a potential initial public offering of its African bottling business as soon as next year after previously putting the plans on hold, people with knowledge of the matter said.
The drinks company is considering a dual listing for Coca-Cola Beverages Africa in Johannesburg and Amsterdam, according to the people. It may seek a valuation of more than US$8 billion for the business, the people said, asking not to be identified because the information is private.
Coca-Cola owns 66.5 per cent of the bottling unit while the remaining 33.5 per cent is owned by Gutsche Family Investments. Deliberations are at an early stage and details of the offering could change, the people said.
A spokesperson for Coca-Cola declined to comment beyond an earlier statement that the company “remains committed to successfully listing Coca-Cola Beverages Africa as a public company via an initial public offering once market conditions become more favourable.” A representative for Gutsche Family Investments referred queries to Coca-Cola.
Coca-Cola first announced in 2021 its intention to sell a portion of its shareholding in the unit via an IPO but the plan was put on ice the following year.
Coca-Cola Beverages Africa is the eighth largest Coca-Cola bottling partner worldwide by revenue and the biggest on the continent, accounting for about 40 per cent of all Coca-Cola volumes sold in Africa. The unit now operates in about 15 African countries including Kenya, Ethiopia, Namibia and Tanzania, employing more than 18,000 people, according to its website.
