Lotte Group eyes full control of Pepsi Philippines

MANILA, Philippines — The Lotte Group of South Korea is eyeing full control of Pepsi Cola Products Philippines Inc. but it has no plans to delist PCPPI from the local bourse.

The company launched a tender offer that covers all outstanding common shares of PCPPI at a price of P1.95 each share.

The Lotte Group is doing the tender offer through Lotte Corp. subsidiary Lotte Chilsung Beverage Co. Ltd..

“This tender offer price represents a 12.27 percent premium over the six-month volume weighted average price (VWAP) and a 6.14 percent premium over the three-month VWAP of PCPPI’s common shares.  This price is also above the current trading price of the company’s shares,” Lotte said.

PCPPI’s average trading price is P1.91 per share. Its highest price in 52 weeks was P2.22 per share, while the lowest was P1.13 per share.

Lotte Chilsung said the tender offer could  serve as an opportunity for shareholders to sell their shares and potentially realize their investment. 

For its part, Lotte Chilsung is undertaking the tender offer as a strategic initiative that will enable it to acquire significant economic interest in PCPPI. 

In a filing with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange, Lotte said it has no plans to delist PCPPI from the local bourse. 

It also has no plans that will result in any merger, reorganization or liquidation of PCPPI or anything that will result in a material change to the company’s corporate structure or business.

The tender offer started on Dec. 12, 2019 and will run until 5 p.m. of Jan. 16, 2020.   

PCPPI is the exclusive manufacturer of PepsiCo beverages and snacks in the Philippines, with a relationship spanning 70 years.

It sells well-known food and beverage brands Pepsi-Cola, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting, Premier, Milkis, Aquafina, and Cheetos.

PCPPI has established 14 operations across the country, serving more than 700,000 outlets and providing employment through its extensive distribution network.