The Coca-Cola Amatil Ltd (ASX: CCL) share price is pushing higher on Monday.
In morning trade, the beverage company’s shares are up 0.5% to $13.15.
Why is the Coca-Cola Amatil share price pushing higher?
This morning Coca-Cola Amatil provided investors with an update on its takeover approach from Coca-Cola European Partners.
In November, the company revealed that it had entered into a scheme implementation deed with Coca-Cola European Partners for the acquisition of all of the issued shares held by independent shareholders via a scheme of arrangement.
This followed the receipt of an offer of $12.75 per share, less any final dividend paid before the date of implementation of any scheme. This represented a premium of 23% to the undisturbed one-week volume weighted average price at the time. It also valued the company at approximately $9.3 billion.
At the time, the implementation of the scheme remained subject to certain conditions. These include regulatory approvals, no material adverse changes in its performance, an independent expert report, shareholder approval, Australian court approval, and other customary conditions.
What’s the latest?
Today, the takeover approach moved closer to becoming a reality after Coca-Cola Amatil announced that the Foreign Investment Review Board (FIRB) has determined that the Commonwealth has no objection to a wholly owned subsidiary of CCEP acquiring up to a 100% interest in the company.
The receipt of FIRB approval satisfies one of the conditions precedent to the implementation of the scheme.
What’s left to do?
The implementation of the scheme remains subject to a few more conditions. This includes approval from the New Zealand Overseas Investment Office.
In respect to shareholder approval, no firm date has been set for the vote. However, Coca-Cola Amatil is expecting to hold a shareholder meeting early in 2021.
In the meantime, it has advised that shareholders do not need to take any action in relation to the scheme.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- These blue chip ASX shares just hit multi-year highs
- Why the Coca-Cola Amatil (ASX: CCL) share price is in focus today
- The ASX 200 stock facing a day of reckoning at the February reporting season
- Citi sees bigger takeover offer coming for Coca-Cola Amatil (ASX:CCL) share price
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why the Coca-Cola Amatil (ASX:CCL) share price is pushing higher appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3coM1AJ
Leave a Reply