Coca-Cola may buy back majority stake in Philippine unit

Food and beverage giant San Miguel Corp. said US-based The Coca-Cola Co. is keen on acquiring a majority stake in Coca-Cola Bottlers Philippines Inc. (CCBPI).

In a disclosure to the Philippine Stock Exchange, San Miguel said the company and The Coca-Cola Co. continue their discussions on the ownership of CCBPI.

"The discussions, at this time, include negotiations over The Coca-Cola Co. taking at least majority stake in and management and operational control of CCBPI," San Miguel said.

San Miguel, however, stressed that discussions are ongoing and no definite agreements have yet been reached.

The Coca-Cola brand is enjoyed by consumers in over 200 countries around the world. In 1927, it officially began its remarkable story in the Philippines.

Today, it remains the brand leader in the Philippine softdrink industry with its new variants, Coke Light, Coke Light with Lemon, Vanilla Coke, and Cherry Coke.

Meanwhile, San Miguel Corp. is putting off acquisitions this year as it hopes to focus on further building existing businesses both here and abroad to build long-term value for shareholders.

The conglomerate is strengthening its non-alcoholic business in the Asian region with two plants on stream in Indonesia and Thailand and another two in South China and Vietnam soon to follow.

In the first quarter this year, San Miguel reported a seven percent growth in its net income to P2.17 billion on net sales of P60.8 billion or an increase of 29 percent from the previous level.

The improvement was mainly due to the consolidation of National Foods Ltd. and a 13 percent volume gain in its food and agribusiness units.