Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners Plc (CCEP) have completed their $1.8-billion acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI) from The Coca-Cola Company (TCCC).

In a statement, AEV said CCBPI, the exclusive bottler and distributor of TCCC products in the Philippines, is profitable and has attractive growth prospects.

The acquisition was recently given the green light by they Philippine Competition Commission (PCC). Under the terms of the acquisition, CCEP will own 60 percent of CCBPI while AEV will take the remaining 40 percent ownership.

The transaction values 100 percent of CCBPI at $1.8 billion on a debt-free, cash-free basis and the final cash consideration will be subject to cash, debt-like items and working capital adjustments at completion of the transaction.

“The acquisition would build on AEV’s portfolio diversification into the branded consumer goods space. AEV is well-positioned to support CCBPI’s growth ambition through the synergies which could be generated from AEV’s other business interests in the country,” AEV said.

It added that “the acquisition would also build on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) in 2021.”

AEV’s acquisition of its 40 percent interest in CCBPI was partly funded by the proceeds of its P17.45 billion bond issuance of P10 billion, with an oversubscription option of up to P7.45 billion.

The issuance is the second tranche of AEV’s P30-billion Shelf Registration from 2022 to 2025 under its 2022 Debt Securities Program.

The proceeds of the proposed bond issuance will be mainly used to refinance the company’s P6.85 billion bonds maturing on Nov. 16, 2023 and to partially fund the potential acquisition of a 40 percent equity interest in CCBPI.