RC Cola units’ buyout still under negotiations

MANILA, Philippines - The investor group led by businessman and former ambassador Alfredo Yao has yet to complete the acquisition of two companies behind RC Cola.

In a disclosure, listing vehicle Maybank ATR Kim Eng Financial Corp. (MAKE) said that “to date, the proposed acquisition is still under negotiation.”

“The parties concerned have not yet executed any document or agreement with respect to the said transaction,” it added.

Late last month, MAKE’s board approved the acquisition plans of its subsidiary ARC Refreshment Corp. for “all the operating assets of Mega Asia Bottling Corp. consisting of Mega Asia and such other assets deemed necessary for bottling operations.”

It will also absorb the operating assets of Asiawide Refreshments Corp. including machinery and equipment, bottles, inventories, receivables and other assets.

Asiawide is the exclusive manufacturer and distributor of RC Cola in the Philippines while Mega Asia acts as the authorized bottler.

“The proposed acquisition is still under negotiation and the parties have yet to execute definitive agreements on the said proposed transaction,” MAKE said.

The company secured yesterday the approval of the Philippine Stock Exchange to extend its trading suspension to Jan. 16. Shares of MAKE were suspended from trading since Jan. 2 due to the acquisition program.

Yao’s flagship Zest-O Group earlier expressed its intent to list Asiawide, which plans to tap other markets in Southeast Asia.