PSE halts trading of Pepsi shares
THephilippinestockexchange (PSE) on Thursday suspended the trading of Pepsi-cola Products Philippines Inc.'s stocks after South Korean firm Lotte Chilsung Beverage Co. completed the tender offer for the bottler's shares.
Lotte Chilsung, whose parent firm already own a minority stake in the bottler, has made a tender offer on the remaining shares of Pepsi Philippines. It bought some 1.13 billion shares in the exercise, or equivalent to 30.7 percent of the company, it said.
As a result, Pepsi Philippines’s public ownership will fall to 2.1 percent, or below the 10-percent minimum public float requirement by the PSE.
“Quaker Global Investments B.V., the wholly-owned subsidiary of Pepsico Inc., did not participate in the tender offer. The company remains the exclusive bottler in the Philippines of Pepsico’s beverage brands Pepsi, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Sting and Aquafina,” it said. Lotte last year began its tender offer for the shares of Pepsi Philippines and has asked for an exemptive relief from the Securities and Exchange Commission and the PSE since it has no plans to de-list the company from the local bourse.
The Korean company said it has no plans that would result in any merger, reorganization or liquidation of the company, or that would result in a material change to the company’s corporate structure or business.
Lotte Corp. already owns at least 42.22 percent of Pepsi Philippines.
Lotte Chilsung, the owner of brand such as Milkis aside from other popular Pepsi-cola brands, is buying some 2.13 billion common shares of the local bottling firm, or about 57.78 percent, for P1.95 per share. The company's share price close on Wednesday at P1.70 apiece. “The company will disclose in due course its plans with regard to its compliance with the minimum public ownership requirement,” it said.