Lotte to reopen tender offer for Pepsi shares

MANILA, Philippines — Lotte Chilsung Beverage Co. Ltd. intends to complete its acquisition of shares in Pepsi-Cola Products Philippines Inc. (PCPPI) soon.

It plans to reopen its tender offer for a period of 10 business days, PCPPI said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.

However, Lotte said this was only possible if the Securities and Exchange Commission would lift its suspension of the tender offer.

“Accordingly, the tender offer can only be reopened after the SEC resolves the issue and lifts the suspension. We also note that the tender offer may be subject to conditions, if any, that the SEC may impose,” Lotte said.

The SEC raised fairness opinion issues on the tender offer and directed Lotte to stop its tender offer last February.

“Among others, the fairness opinion attached to the tender offer report filed by Lotte was issued by P&A Grant Thorton, which is currently providing bookkeeping services to two entities related to PCPPI,” the SEC said.

On the part of the Philippine Competition Commission, it has already approved the proposed transaction, which it said would not result in a substantial lessening of competition.

PCPPI is the exclusive manufacturer of PepsiCo beverages in the Philippines.