Amatil shareholders overwhelmingly voted today to sell the company to Coca-Cola European Partners (CCEP) for $9.8 billion.
In November 2020, Coca-Cola Amatil announced it had entered into a Scheme Implementation Deed with CCEP. However, a trading update in January revealed that Amatil sales had returned to growth in 4Q20, up 0.4% on the previous corresponding period, while New Zealand volumes surged by 5.2%. From a category perspective, the Coke trademarks delivered strong volume growth, up 4.6% in 4Q20, led by demand for Coca-Cola No Sugar.
As a result, CCEP raised its offer to acquire all issued shares in Coca-Cola Amatil held by independent shareholders from $12.75 to $13.50.
Amatil Chairman Ms Ilana Atlas said: “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. 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.”
Amatil advised on Friday, April 16, that the resolution to approve the Scheme was passed by the requisite majorities of independent shareholders at the scheme meeting held earlier today pursuant to orders made on March 12, 2021, by the Supreme Court of New South Wales .
In summary, 81.55% of independent shareholders present and voting (in person or by proxy, attorney or corporate representative) voted in favour of the Scheme Resolution; and 99.03% of the votes cast by independent shareholders were in favour of the Scheme Resolution.
The scheme remains subject to the approval of the Court at the hearing scheduled for 9.15am (Sydney time) on April 20, 2021.
If the Court approves the Scheme, Amatil proposes to lodge an office copy of the orders of the Court with the Australian Securities and Investments Commission (ASIC) (expected to occur on April 21, 2021), at which time the Scheme will become effective. It is expected that Amatil shares will be suspended from trading on the ASX from close of trading on April 21, 2021 and the Scheme will then be implemented on May 10, 2021.