The Coca-Cola Amatil Ltd (ASX: CCL) share price is pushing higher on Monday.
In morning trade, the beverage company's shares are up 0.5% to $13.15.
Why is the Coca-Cola Amatil share price pushing higher?
This morning Coca-Cola Amatil provided investors with an update on its takeover approach from Coca-Cola European Partners.
In November, the company revealed that it had entered into a scheme implementation deed with Coca-Cola European Partners for the acquisition of all of the issued shares held by independent shareholders via a scheme of arrangement.
This followed the receipt of an offer of $12.75 per share, less any final dividend paid before the date of implementation of any scheme. This represented a premium of 23% to the undisturbed one-week volume weighted average price at the time. It also valued the company at approximately $9.3 billion.
At the time, the implementation of the scheme remained subject to certain conditions. These include regulatory approvals, no material adverse changes in its performance, an independent expert report, shareholder approval, Australian court approval, and other customary conditions.
What's the latest?
Today, the takeover approach moved closer to becoming a reality after Coca-Cola Amatil announced that the Foreign Investment Review Board (FIRB) has determined that the Commonwealth has no objection to a wholly owned subsidiary of CCEP acquiring up to a 100% interest in the company.
The receipt of FIRB approval satisfies one of the conditions precedent to the implementation of the scheme.
What's left to do?
The implementation of the scheme remains subject to a few more conditions. This includes approval from the New Zealand Overseas Investment Office.
In respect to shareholder approval, no firm date has been set for the vote. However, Coca-Cola Amatil is expecting to hold a shareholder meeting early in 2021.
In the meantime, it has advised that shareholders do not need to take any action in relation to the scheme.
