San Miguel, Coca-Cola Amatil finalize 2.7-b stock swap
San Miguel, Coca-Cola Amatil finalize 2.7-b stock swap
MANILA (AFP): The Philippines' San Miguel Corp. and Coca-Cola
Amatil Ltd. of Australia said yesterday they had agreed on US$2.7
billion deal to integrate their soft drinks operations through a
stock swap.
San Miguel, a diversified beer-based consumer company with
operations in China, Indonesia, Vietnam and Hong Kong, said in a
statement here that the two firms had signed "definitive
agreements" for the merger.
A formal exchange of shares, worth a total 2.7 billion
dollars, would take place on July 1, it added.
The signing finalizes an agreement in principle announced in
April by both San Miguel and Coca-Cola Amatil to merge their
operations to create the largest Coca-Cola bottling group outside
the United States.
Under the deal, San Miguel will swap 70 percent of its equity
in Coca-Cola Bottlers Philippines Inc. for a 25 percent stake in
Coca-Cola Amatil.
Four San Miguel nominees will be invited to join the board of
the Coca-Cola Amatil, the statement said.
The merger will make San Miguel the second-largest shareholder
of Coca-Cola Amatil after The Coca-Cola Company of the United
States.
"The transaction greatly expands Coca-Cola Amatil's presence
in Asia and makes it the largest Coca-Cola anchor bottler outside
the United States with a consumer base of 450 million people
accounting for approximately eight percent of worldwide unit
sales of The Coca-Cola Company," the statement said.
The Philippine government, which owns 48 percent of San
Miguel, had earlier questioned the deal and said it would call
for a renegotiation to increase San Miguel's share to at least 30
percent and the number of board seats from three to four.
Some analysts have criticized the merger as "disadvantageous"
to San Miguel, saying Coca-Cola Amatil was not as profitable as
Coca-Cola Bottlers Philippines.
On the Philippine Stock Exchange on Wednesday, San Miguel
Corp.'s A shares eased one peso to 49 pesos and its B shares lost
50 centavos to close at 78 pesos.