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Coca-Cola Amatil (ASX:CCL) share price jumps 16% on takeover bid

coca cola amiltal, cold drink, hot day, refreshment, thirst

The Coca-Cola Amatil Ltd (ASX: CCL) share price came out of a trading halt to jump 16.27% this morning, reaching $12.50 before falling back to $12.36 at the time of writing. This came after the soft drink bottler received a takeover bid from Coca-Cola European Partners PLC (NYSE: CCEP), which we discussed at the Motley Fool earlier today here.

How much is the bid?

Coca-Cola European Partners made an offer of $12.75 cash per Coca-Cola share, less any dividends received by shareholders in the second half of 2020. The bidder will also make an offer to American parent, the Coca-Cola Company (NYSE: KO) for the shares it holds indirectly in Coca-Cola Amatil. If negotiations with the Coca-Cola Company are successful, the Coca Cola Amatil board has conditionally stated it will recommend shareholders vote in favour of the offer. This is provided there is no superior offer and that the bid is found to be fair and reasonable, as well as in the best interests of independent shareholders.

A report in the Australian Financial Review says shareholders have labelled the offer “opportunistic” with Coca-Cola Amatil management backing its conditional support for the takeover offer.

How has Coca-Cola Amatil performed lately?

Coca-Cola Amatil also released a trading update for the third quarter of 2020. Volumes in Q3 2020 were down 5.4% on the prior corresponding period (pcp). Volumes for the year to date have also dropped, down 9.7% on the pcp. Third quarter trading revenue was $1,105.9 million, down 4.2%, with year to date trading revenue down 7.6%.

Coca-Cola Amatil had net debt of $1,745 million at Q3 2020, this was down $82 million compared to the prior corresponding period.

The company reported that it had grown market share in Australia, New Zealand and Indonesia.

About the Coca-Cola Amatil share price

Coca-Cola Amatil is a soft drink bottler in the Asia Pacific region, operating in Australia, New Zealand, Indonesia, Papua New Guinea, Fiji and Samoa. The company has been listed on the ASX since 1970.

The Coca-Cola Amatil share price is up 58.69% since its 52-week low of $7.77. It is up 11.89% since the beginning of the year. The Coca-Cola Amatil share price is up 21.82% since this time last year. 

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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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