UAC of Nigeria Plc (UACN) has disclosed that it deposited N19.2 billion in escrow towards the acquisition of CHI Limited, makers of popular beverage brands Chivita and Hollandia, from The Coca-Cola Company.
The landmark deal, described by CEO Fola Aiyesimoju as “years in the making,” marks a significant expansion of UAC’s footprint in Nigeria’s fast-moving consumer goods (FMCG) sector.
The acquisition, which has now received approval from the Federal Competition and Consumer Protection Commission (FCCPC), is set to bring CHI’s leading juice and dairy product lines into UAC’s already diverse portfolio that includes Gala, Supreme Ice Cream, and Swan Water.
Acquisition Fully Financed, Pending Final Regulatory Clearances
According to UACN’s Q3 2025 financials, the N19.2 billion was deposited as part of the investment and remains held in escrow as of September 30, 2025, pending the fulfillment of conditions precedent under the acquisition agreement.
UACN also reported incurring N2.2 billion in acquisition-related expenses. Group CFO Funke Ijaiya-Oladipo emphasized the company’s disciplined approach to growth during its half-year investor call, stating, “Yes, we’ve taken on more leverage, but we’ve also improved liquidity and are operating with higher efficiency.”
Funding for the acquisition was sourced through a mix of internal resources and external financing. UACN raised about N5.4 billion from the sale of Eurobond investments and borrowed approximately N43 billion from a consortium of financial institutions, including First Bank, Zenith Bank, the Bank of Industry (BOI), FSDH, and a related-party loan from Famous Brands.
A significant portion, N16.1 billion, was raised through commercial papers with a steep interest rate of 25%, due in November 2025. The company also holds short-term loans with interest rates ranging between 21.5% and 32%, alongside a corporate bond yielding 21.5%.
Coca-Cola’s exit and write-down
While UACN has yet to reveal the full cost of the transaction, Coca-Cola, in a recent filing, disclosed a $393 million charge related to its Nigerian operations held for sale.
The beverage giant initially acquired a 40% stake in CHI in 2016 and completed a full takeover in 2019.
Coca-Cola’s total outlay for CHI, including the write-down of $118 million, is estimated at around $500 million (approximately N180 billion at a then exchange rate of N360/$1) per Nairametrics analysis.
At the current exchange rate of N1,500/$1, that figure would equate to roughly N750 billion.
Market Response and Strategic Outlook
Since the acquisition announcement on July 30, UACN’s stock price rose from N73 to a peak of N83.60 on August 8, 2025, marking a 166% year-to-date gain.
However, the share price has since pulled back, closing at N66 at the end of October.
Speaking on the strategic rationale, Aiyesimoju noted, “This was not an opportunistic deal. We had planned for this years in advance, ensuring our foundation people, IT systems, and risk controls were strong enough to manage a larger business.”
With the deal now completed and CHI officially integrated, UACN is poised to become a top-tier player in Nigeria’s consumer goods sector, leveraging CHI’s dominant position in fruit juices and dairy drinks to bolster its market share.
