The transaction has an enterprise value of P14 billion.
SMC chairman and CEO Eduardo M. Cojuangco Jr. said, "We are delighted to have reached an agreement with RFM which will bring Cosmos Bottling Corp. into the San Miguel Group. Cosmos’ soft drinks and root beer brands complement Coca-Cola’s brands and we’re convinced that the combined organization will strengthen our soft drinks business and deliver more value to our consumers."
James G. Harting, president of the Philippine division of The Coca-Cola Co., said, "the completion of this transaction will allow us to further satisfy the thirst of consumers here in the Philippines with a broader range of affordable soft drinks and underscores our long-term commitment to this country."
RFM president and CEO Jose A. Concepcion III said, "We are proud that the owner of the world’s most recognized brand and one of the Philippines’ most admired companies are jointly acquiring our Cosmos brands. We are happy that we in RFM have been part of the growth story of Cosmos – the most profitable and fastest growing company in the Philippine soft drinks industry – and we wish SMC and TCCC every success in the future. We remain extremely confident that they will continue to grow our brand here at home and perhaps even extend its reach outside the Philippines."
Upon closing the sale, a tender offer will be made to all other shareholders by The Coca-Cola Co. and Coca-Cola Bottlers Phils. Inc., in accordance with the Securities Regulation Code. The transaction is expected to be finalized by the end of the year.
ABN-AMRO is acting as financial adviser of SMC and The Coca-Cola Co. ING Barings is advising RFM Corp.