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CCI’s investment in Uzbekistan

Press Release Jul 07, 2021

CCI’s investment in Uzbekistan

CCI signed a Share Purchase Agreement with The State Assets Management Agency of the Republic of Uzbekistan as the winner in the open sale process to privatize 57,118% shares of the LLC Coca-Cola Bottlers Uzbekistan, Ltd. “As CCI, we believe that we will create value in Uzbekistan with our experience in Central Asia” Coca-Cola İçecek CEO Burak Başarır said.

Coca-Cola İçecek (CCI) and the State Assets Management Agency of the Republic of Uzbekistan (UzSAMA) signed the Share Purchase Agreement for majority shares of LLC Coca-Cola Bottlers Uzbekistan (CCBU). Participating in the competitive bidding procedure for the privatization of Coca-Cola Bottlers Uzbekistan, CCI submitted a final bid of $252.28 million for a 57.118% share in CCBU which worths $430 million. The process is expected to be completed within 2 months from the date of signing of the share purchase agreement after receiving relevant and customary approvals including governmental approvals. Following the approvals, the transaction is anticipated to be immediately accretive to CCI’s consolidated profitability.

Considering Uzbekistan as a suitable country for the geographical expansion, "We are excited to serve to a population of over 435 million in 11 countries including Uzbekistan. As CCI, we believe that we will create value in Uzbekistan market, which has a growth potential, with our experience in Central Asia” Coca-Cola İçecek CEO Burak Başarır said. “We believe that CCBU has significant potential to improve its distribution and sales system in a short period of time by leveraging CCI’s knowledge and experience in building in market execution capabilities, revenue growth management, and effective route to market capabilities” Başarır said.

Anadolu Group, the main shareholder of CCI, has a long history of investment in Central Asia. Anadolu Group has invested $850 million in the Caucasus and Central Asia over the last 25 years. Continuing its activities in Turkey, Pakistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Turkmenistan, Jordan, Iraq, Syria and Tajikistan, CCI employs more than 8,500 people and has a total of 26 plants, offering a wide range of beverages to a consumer base of 400 million people. Building up a strong industrial presence in the region, CCI employs 1,600 people in its 6 factories in 5 countries in the Caucasus and Central Asia. CCI aims to support the growth of the soft drink industry in the Uzbekistan market and create value for both the country's economy and CCI, with its proven regional expertise and knowledge in emerging and leading markets.

About CCBU

CCBU, one of the leading companies of Uzbekistan in the beverage sector, operates 3 plants in Tashkent, Urgench and Namangan. In 2020, CCBU’s net sales revenue was around USD 170 million with an EBITDA margin of 17%, while based on US GAAP audited financials net profit was USD 19.6 million.

About Uzbekistan

Uzbekistan is the most populous country in the region with a population of approximately 34 million and IMF estimates its population to grow by 1.5% annually in the next 5 years. Uzbekistan GDP has increased by 4.5% annually on average between 2016 – 2020 and is expected to grow over 5% annually over the next five years according to IMF projections.

NARTD market in Uzbekistan recorded 15% annual growth between 2017-2019 and as of 2020, total NARTD market size was 316-million-unit case (“uc”) with a per capita consumption level of 294 servings, where CCBU’s market share within NARTD is only 25%, indicating a solid growth opportunity.

About CCI

CCI is a multinational beverage company operating in Pakistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Turkmenistan, Jordan, Iraq and Tajikistan. As one of the key bottlers of the Coca-Cola system, CCI produces, distributes and sells sparkling and still beverages of The Coca-Cola Company. With a total of 26 plants in 10 countries, CCI is offering a wide range of beverages to a consumer base of 400 million people. In addition to sparkling beverages, the product portfolio includes juices, waters, sports and energy drinks and iced teas. CCI's shares are traded on the Istanbul Stock Exchange (BIST) under the symbol "CCOLA.IS", and Eurobond is traded in the Irish Stock Exchange, under the symbol "CCOLAT". 

 

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