The Lotte Group of South Korea said it has no plan to delist Pepsi Cola Products Philippines Inc. from the Philippine Stock Exchange.
Lotte Group is currently conducting a tender offer to acquire shares it does not own in PCCPI to increase its ownership in the soft drinks manufacturer.
Lotte Chilsung Beverage Co. Ltd., a subsidiary of Lotte Corp., offered to acquire up to 2.134 billion common shares, representing 57.78 percent of the company’s total issued outstanding capital stock at a tender offer price of P1.95 apiece.
The tender offer price represents a 12.27-percent premium over the six-month volume weighted average price and 6.14-percent above the three-month VWAP of PCPPI’s common shares. It is also above the current trading price of the company’s shares.
Lotte Chilsung said the tender offer would be an opportunity for shareholders to sell their shares and potentially realize their investment. It said it was undertaking the tender offer as a strategic initiative to acquire significant economic interest in PCPPI.
The Korean company said it had no plans that would result in any merger, reorganization or liquidation of PCPPI or that would result in a material change to the company’s corporate structure or business.
The tender offer period started on Dec. 12, 2019 and would run until 5 p.m. of Jan. 16, 2020.
Lotte Chilsung, one of the biggest beverage companies in South Korea, acquired a significant stake in PCPPI in 2010 after purchasing the combined stakes of Guoco Inc., Hongway and other minority shareholders.
Lotte Chilsung holds a 38.8-percent stake in PCPPI while US beverage giant PepsiCo Inc. owns 25 percent in the Philippine company.
PCPPI earlier said it would continue to strengthen its core business in the beverage space. The company discontinued local production of snacks under the Cheetos trademark.