Coca-Cola Takes Full Ownership of Philippines Bottler

22/02/07 The Coca-Cola Company has acquired San Miguel's 65% shareholding in Coca-Cola Bottlers Philippines, Inc. (CCBPI). CCBPI also owns Cosmos Bottling Company and Philippine Beverages Partners, Inc. San Miguel Corporation was previously the majority shareholder of CCBPI and had management control of the bottler.

The Coca-Cola Company now has full ownership of CCBPI. The total consideration of the transaction is US$590 million.

"Our partnership with San Miguel Corporation over the years has been extremely important to our business in the Philippines. We are grateful to San Miguel Corporation for its continuing support of our long-term commitment to the Philippines, and we look forward to continued cooperation with San Miguel, who will remain a key supplier to our business," said Muhtar Kent, president and chief operating officer of The Coca-Cola Company.

"Coca-Cola has been sold in the Philippines since the beginning of the 20th century and has been locally produced since 1927. This is a very important market for us, and we believe our business here has great growth potential. Our business in the Philippines will now be fully integrated with our Company's overall objectives. It will benefit from full access to our Company's management expertise in helping to operate the bottling businesses," Kent concluded.

"The sale of Coca-Cola Bottlers Philippines, Inc., supports our company's more focused business model, emphasizing fully owned branded positions," said Eduardo M. Cojuangco Jr., chairman and chief executive officer of San Miguel Corporation.

"This transaction provides San Miguel Corporation the opportunity to focus on its core business areas in the Philippines and its planned expansion throughout the region," added Cojuangco.

The Company's Bottling Investment Group, the dedicated function to manage bottling operations of The Coca-Cola Company, will lead the management of CCBPI and ensure a smooth transition of the bottling operations.

For its part, San Miguel Corporation is to develop its own domestic beverage business, producing juice drinks and ready-to-drink teas, to complement existing operations in Thailand and Indonesia.