Coca-Cola has acquired a 40 percent stake in Nigerian juice and snack producer Chi Ltd, it said on Saturday, as it continues to expand in Africa to attract a young, modern and fast-growing population, Reuters have reported.
The drinks giant bought the stake from unlisted TGI Group, the two companies said in a joint statement, but did not disclose the value of the sale.
In a statement, Coca-Cola says: “we intend to increase ownership within three years, subject to regulatory approvals while working on other long-term commercial structures”
According to Reuters, sources disclosed that Chi was valued at as much as $1 billion last year. The source further disclosed that Coca-Cola was paying a “triple-digit-million-dollar” amount for the stake.
Chi Ltd which is based in Lagos produces mostly fruit drinks, iced teas, snacks and dairy products and its owners have been considering a sale for some time.
The development is coming at a time Nigeria is facing one of its worst economic crises for decades as a sharp decline in oil-generated revenue has eroded public finances, hammered its currency and hit consumer sentiment.
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