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Tingyi Gains on China Approval of PepsiCo Deal: Hong Kong Mover

March 30 (Bloomberg) -- Tingyi (Cayman Islands) Holding Corp., China’s biggest maker of packaged food, climbed in Hong Kong trading after getting government approval to swap a stake for PepsiCo Inc.’s bottling operations in China.

The stock rose 3.7 percent to HK$22.45 at the 4 p.m. close in Hong Kong. The benchmark Hang Seng Index fell 0.3 percent.

China’s Ministry of Commerce yesterday approved a deal that PepsiCo and Tingyi announced last November, Tingyi Chief Financial Officer Frank Lin said over the phone. Under the agreement, Tingyi’s beverage subsidiary, Tingyi-Asahi Beverages Holding, will become Purchase, New York-based PepsiCo’s franchise bottler in China. It will also make, sell and distribute PepsiCo’s carbonated soft-drink and Gatorade brands.

PepsiCo will transfer equity interests in bottling operations in China to Tingyi-Asahi Beverages Holding.

In exchange, Pepsico will receive 5 percent of Tingyi-Asahi, with an option to increase the stake to 20 percent by October 2015.

To contact Bloomberg News staff for this story: Michael Wei in Shanghai at mwei13@bloomberg.net

To contact the editor responsible for this story: Stephanie Wong at swong139@bloomberg.net

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