Coca-Cola Amatil Ltd (ASX: CCL) shares are slumping lower on Friday. At the time of writing, the Coca-Cola Amatil share price is sliding 1.26% to $13.29.
This comes as shareholders of the S&P/ASX 200 Index (ASX: XJO) listed beverage giant are voting on the long-proposed acquisition by Coca-Cola European Partners (CCEP).
Shareholders are meeting virtually this morning in Amatil's Independent Shareholder Scheme Meeting, being held by management in Sydney.
Image source: Getty Images
What exactly are shareholders voting on?
Yesterday, after market close, Coca-Cola Amatil announced that the New Zealand Overseas Investment Office (OIO) had given the green light for CCEP to acquire up to 100% of the shares in Amatil. That ticked the last box needed to meet all the regulatory approval conditions precedent under the Implementation Deed.
CCEP initially announced its intention to acquire all the independently held shares in Amatil back in 2019. Since then, it has gradually increased its offer price. On 26 October 2020, CCEP offered $12.75 per share. On 15 February this year, the European beverage giant increased its offer to $13.50 per share.
The lengthy acquisition process was spurred along last month when the Supreme Court of New South Wales approved the convening of a scheme meeting.
What happens if Amatil shareholders approve the acquisition scheme?
According to Ilana Atlas, chair of Coca-Cola Amatil, if the scheme is approved and implemented:
CCEP will acquire all of the shares in Coca-Cola Amatil held by independent shareholders, being all shareholders other than The Coca-Cola Company, for $13.50 cash per share less the cash amount of the final second half 2020 dividend of 18 cents per share, which was announced on 18 February 2021. CCEP has declared this to be its best and final offer.
The company said it expects to pay the second half dividend on 30 April. Atop the 18-cent dividend, if the shareholders approve the scheme today, they'll receive $13.32 cash per share upon implementation of the scheme. That's expected to occur on 10 May.
Amatil's Related Party Committee and group managing director Alison Watkins unanimously recommend that independent shareholders vote in favour of the scheme.
Coca-Cola Amatil share price snapshot
Following a big rise on 26 October, after the CCEP takeover offer was lifted to $12.75 per share, the Coca-Cola Amatil share price has gained another 4.2%.
Year to date, Coca-Cola Amatil shares are up 2.7%, compared to a gain of 5.6% on the ASX 200.
