Coca-Cola Amatil sells Korean unit to LG Household

Sydney-based soft drinks manufacturer Coca-Cola Amatil has signed a formal agreement with LG Household & Health Care for the sale of its South Korean bottling business.

The sale proceeds, including net debt, are expected to be in line with previous guidance of up to $434 million (A$545 million), with the final purchase price being determined after an independent third party review of the audited accounts.

The Coca-Cola Korea Bottling Company (CCKBC) deal is expected to be completed in late October, subject to the satisfaction of conditions including Korean regulatory approvals.

In a separate and subsequent transaction, it has also been proposed that The Coca-Cola Company will acquire 10 percent of CCKBC.