CCA to sell Pacific Beverages stake if SAB Miller goes for Foster’s

Coca-Cola Amatil (CCA) has agreed to sell its stake in the Pacific Beverages joint venture to its partner SAB Miller if the latter acquires Foster’s.

SAB Miller has agreed to pay CCA between $305m and $380m to relinquish its 50 per cent share of Pacific Beverages.

The two parties have also agreed that if SAB Miller goes ahead with an acquisition, CCA will have the right to acquire certain assets from Foster’s including its Australian spirits and soft drinks businesses.

The agreement has been drawn up because the existing joint venture arrangement limited SAB Miller’s ability to acquire shares in Foster’s.

Explaining the new terms, Terry Davis, group managing director of CCA, said: “We will receive an excellent price for our half share of the Pacific Beverages joint venture and the potential opportunity to supplement our alcoholic beverage strategy.

“We believe that if CCA’s shares in Pacific Beverages are sold under the new arrangements, the purchase price itself will deliver a 2-3 per cent lift in total earnings per share for CCA.”