MANILA, Philippines - South Korean beverage firm Lotte Chilsung Beverage Co. Ltd. will complete its acquisition of a 34.4-percent stake in Pepsi-Cola Products Philippines Inc. worth P4.41 billion through a special block sale to be crossed at the stock exchange today (Oct. 20).
The block sale, which involves 1.26 billion shares priced at P3.50 a piece, will be acquired from minority shareholders including Pepsi Philippines president Micky Yong, Malaysian Group Guoco Inc., Hong Way and Nassim Fund of Singapore.
This transaction will make Lotte the single biggest shareholder of Pepsi Philippines, with New York-based PepsiCo. remaining as the other majority shareholder with its 30 percent stake in Philippines’ second largest softdrinks firm.
The acquisition does not cover the mandatory tender offer requirement under the Securities Regulation Code since it falls short of the minimum 35-percent equity benchmark.
Lotte is expected to bring its expertise and resources to continue the growth momentum of Pepsi Philippines, an important step in extending its business in the fast growing Asian market.
The conglomerate produces carbonated soft drinks, juices, coffees, teas, health beverages, soybean drinks, mineral waters and alcoholic drinks under the brand names Milkis, Chilsung Cider, two percent, Let’s Be, Sarang-Cho, Mango, Pomegranate, Plus Minus, Ceylon Tea, Today’s Tea, SacSac, Etc, Cantata and Ryu.
Lotte, a multinational conglomerate founded in 1948 in Japan and 1967 in Korea, is aiming to become one of Asia’s top 10 global business groups by 2018. With annual sales of $45 billion in 2009, Lotte is engaged in various businesses including food, retail, tourism, petrochemicals, construction and finance.
Meanwhile, Pepsi Philippines is putting up two new lines which can produce both carbonated and non-carbonated drinks to take advantage of the growing demand for health drinks.