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

The Coca-Cola Amatil share price soared this morning after the company announced an official takeover bid from Coca Cola European Partners.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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. 

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.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »