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UPDATE 1-Coca-Cola to buy AB InBev's stake in African bottler

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Oct 10 Coca-Cola Co said it would exercise its right to buy Anheuser-Busch InBev's stake in Africa's biggest Coke drinks bottler, after the brewer's takeover of SABMiller.

Coke, which formed Coca-Cola Beverages Africa (CCBA) along with SABMiller and the South African owners of bottler Coca-Cola Sabco in 2014, had retained the right to buy SABMiller's stake in the event of a change of control at the brewer.

Coke will negotiate terms of the deal with AB InBev in the coming months and continue talks with potential partners to refranchize CCBA, the company said on Monday.

Coke owns 11.3 percent of CCBA, while SABMiller holds 57 percent. The Gutsche family that owns Coke Sabco owns the rest of the bottler, which has operations in 12 markets across Southern and East Africa.

Coke's other bottling partners include Coca-Cola FEMSA in Mexico and Latin America, Coca-Cola HBC AG and Coca-Cola Enterprises in Europe. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Don Sebastian)

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