Tingyi Gains on China Approval of PepsiCo Deal: Hong Kong Mover
Tingyi (Cayman Islands) Holding Corp. (322), 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.
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