Why are Coca-Cola Amatil shares on watch?
Coca-Cola this afternoon provided an update on the proposed takeover by Coca-Cola European Partners PLC (NYSE: CCEP). Importantly, the Supreme Court of New South Wales has today made orders approving the Scheme of Arrangement for CCEP to acquire all Coca-Cola Amatil shares.
The Aussie company will lodge an office copy of the Court orders with the Australian Securities and Investments Commission (ASIC). Shareholders will receive $13.32 cash per share once the Scheme becomes legally effective. The final cash payment is due on the Scheme’s Implementation Date, currently slated for 10 May 2021.
Shareholders will receive the fully franked final dividend of $0.18 per share as announced on 18 February 2021 for shares held at yesterday’s record date.
Today’s news means CCEP can finally acquire Coca-Cola Amatil shares. Tomorrow’s market close will see the company’s shares suspended from trading.
What are the details of the takeover?
Coca-Cola Amatil shares have surged higher in 2021 on the back of takeover developments. CCEP issued a best and final offer to acquire the company for $13.50 per share, or $9.8 billion, in mid-February. That comprises both the $13.32 cash payment and $0.18 per share dividend payment.
That came after several months of pressure on the European group to up its offer from a variety of stakeholders. CCEP ultimately upped its offer on the back of stronger trading conditions for the business in Australia and New Zealand.
Coca-Cola Amatil shares have remained largely unchanged this afternoon. That’s largely thanks to these approvals being a formality and already priced in. That means tomorrow is set to be the final trading day for the Aussie bottling company. It brings to a close a long chapter for the group that listed in 1970 and became Allied Manufacturing and Trade Industries Limited (AMATIL) in 1977.