Lotte notifies PCC of Pepsi Philippines buyout

MANILA, Philippines — The Lotte Group of South Korea is seeking the green light from the Philippine Competition Commission for its plan to acquire a majority stake in Pepsi Cola Products Philippines Inc. (PCPPI).

“Such filing is in compliance with the Philippine Competition Act, its implementing rules and regulations, and relevant PCC issuances requiring notification and PCC approval for transactions meeting certain thresholds set by the PCC,” PCPPI said.

Lotte has launched a tender offer for all outstanding common shares of stock in PCPPI at a price of P1.95 each share.

The price reflects 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, PCPPI said.

For the past 52 weeks, PCPPI has been trading from P1.13 to P2.22 per share.

Lotte Chilsung said it has no plans to de-list PCPPI from the local bourse. 

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

The tender offer period ended yesterday.

PCPPI is the exclusive manufacturer of PepsiCo beverages and snacks in the Philippines, with a relationship spanning 70 years.  It is behind food and beverage brands such as Pepsi-Cola, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting, Premier, Milkis, Aquafina and Cheetos.