AFRICA – As the world economy continues to suffer from a series of destabilizing shocks, The Coca-Cola Company has hit the pause button on its plans to list Coca-Cola Beverages Africa (CCBA) as a publicly traded company.

The soft-drink giant has announced it is delaying the planned initial public offering of part of its stake in the African bottler of its products, saying a rescheduled listing would depend on improved market conditions.

The Coca-Cola company has highlighted it will continue to evaluate the macroeconomic conditions in a bid to decide future timing for an IPO in 2023.

The decision to delay the listing comes at a time of falling global equity investor sentiment as market volatility fuelled by the war in Ukraine, Covid-19 lockdowns in China, rising interest rates, a darkening economic growth outlook and roaring inflation, all weigh on risk appetite.

The planned IPO by Coca-Cola was first revealed in April 2021, with the shares to be listed in Amsterdam and Johannesburg.

The decision is in line with The Coca-Cola Company’s objective of focusing its resources on building consumer-loved brands and innovation.

It also underscores the company’s continued and long-term belief and commitment to the African continent and the leadership of CCBA from South Africa.

Further, the move will allow CCBA to operate as an independent, Africa-focused, South African-headquartered, managed and domiciled business.

The planned IPO by Coca-Cola was first revealed in April 2021, with the shares to be listed in Amsterdam and Johannesburg.

Coca-Cola holds 66.5% of Coca-Cola Beverages Africa, having paid US$3.15bn in 2016 to buy AB InBev out of the African bottling joint venture. The remaining 33.5% is held by the Gutsche Family Investments.

It tried to offload the stake a year later and drew interest from the likes of Heineken and Coca-Cola, reports said at the time.

According to Bloomberg, the Coca-Cola Company was seeking a value of US$8.1 billion (R128.4bn) for the listing of the eighth largest Coca-Cola bottling partner in the world by revenue, and the largest on the continent.

Despite the delayed listing, Coca-Cola has been streamlining its operations in the continent as it recently parted ways with Castel Group, its long-time bottling partner in the region.

Coca-Cola has publicly announced its strategy to change bottlers in Angola, Egypt, Senegal, Burkina Faso, Côte d’Ivoire and Cameroon, which were handled by the subsidiaries of the French beverage company.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE