Singapore fund acquires 9.5% stake in RP Pepsi unit

The Government of Singapore Investment Corp. Private Ltd. (GIC) has reportedly acquired a 9.5-percent stake in Pepsi Cola Bottlers Phils. Inc., stock market sources said.

GIC is a global investment management company established in 1981 to manage Singapore’s foreign reserves. With a network of eight offices in key financial capitals around the world, GIC invests internationally in equities, fixed income, foreign exchange, commodities, money markets, alternative investments, real estate and private equity.

With over 900 employees, GIC manages well over $300 billion worth of investments, making it one of the largest private fund management companies in the world.

GIC invested in the initial public offering (IPO) of Pepsi, the country’s second largest bottler by sales and the exclusive licensed bottler of PepsiCo. in the Philippines.

When asked for comment, BDO Capital & Investment Corp., the lead underwriter of Pepsi’s stock offering, said they “could not comment on it because it is confidential information.”

GIC has a stake in listed home builder Filinvest Land Inc. of tycoon Andrew Gotianun. 

Pepsi completed its public offer last Monday which raised nearly P4 billion.  The offering was reportedly 1.3 times over subscribed by international accounts. 

Analysts said investors may have considered Pepsi cheap compared with its closest competitors on a price-to-earnings basis.

Pepsi offered a total of 1.142 billion shares or 30.9 percent of its enlarged capital, at P3.50 each share which is almost half of its initial indicative price. Of the total offer shares, 380.8 million were issued by way of IPO while 761.6 million were sold by major shareholders Guoco Assets Philippines Inc. and The Nassim Fund.

Post-IPO, the Guoco Group’s stake in Pepsi will go down to 30 percent from 40.3 percent while the Nassim Fund, which acquired Pepsi in 1997 from the Lorenzo family, will hold only 0.2 percent if the greenshoe option is also exercised.  US-based parent PepsiCo, on the other hand, will own 29.5 percent.

Proceeds from the offering will be used to install additional bottling lines to increase capacity and allow the company to manufacture more non-carbonated drinks.

The company also plans to expand its distribution network and acquire additional non-carbonated beverage production facilities to be able to introduce new products.

Pepsi will be the first company to list at the stock exchange this year.