Coca-Cola said it would delay the planned initial public offering of part of its stake in an African bottler of its products, saying a rescheduled debut would depend on factors including macroeconomic conditions.
The Atlanta-based soft-drink giant had set the IPO plan for Coca-Cola Beverages Africa in April 2021, as part of its effort to focus resources on brand building and innovation, it said Tuesday.
Coca-Cola said it would “continue to evaluate macroeconomic conditions in deciding future timing for an IPO in 2023,” adding that its intention of an eventual listing remains unchanged.
Coca-Cola shares were down 1.8% in early New York trading on Tuesday.
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Coca-Cola holds 66.5% of Coca-Cola Beverages Africa, having paid $3.15 billion in 2016 to buy Anheuser-Busch InBev out of the African bottling joint venture.
It tried to offload the stake a year later and drew interest from the likes of Heineken and Coca-Cola HBC, Bloomberg News reported at the time. In April, Coca-Cola said it was working with Rothschild & Co. on an IPO of the business, with shares to be listed in Amsterdam and Johannesburg.
Coca-Cola Beverages Africa operates in 14 territories on the continent and accounts for about 40% of the Atlanta-based company’s drinks sold there, according to its website. Coca-Cola concluded a deal earlier this year to increase local shareholding in its South Africa bottling unit.
Source: News 24
