Coca-Cola Amatil (ASX:CCL) has today announced that the SPC fruit and vegetable processing business will be sold to Shepparton Partners Collective and its group of companies.
The sale is for consideration of $40 million payable at completion.
Coca Cola says taking into account forecasted working capital balances, working capital adjustments to the sale price and costs of disposal, a profit on sale of $10-15 million is expected to be recorded upon completion.
Due to the realisation of recognised deferred tax assets, Amatil’s ability to frank dividends will be significantly impacted in the short to medium term.
Group Managing Director of Coca-Cola Amatil Alison Watkins said Shepparton Partners Collective had the right combination of commercial experience, funding support and confidence in the future of SPC.
Shares in Coca Cola (ASX:CCL) closed 1.68 per cent lower at $9.37 yesterday.