Blog: Is Permanis becoming a valuable target?

Michelle Russell | 8 July 2011

It seems that acquisition-busy Asahi Holdings may have a fight on its hands if it wants to secure its latest target, Permanis.

Kuala Lumpur-based CI Holdings confirmed yesterday (7 July) that an offer price made by Asahi Group Holdings for its subsidiary Permanis was too low. The company has not denied the possibility of selling Permanis, but said it is consistently on the lookout for opportunities to further optimise shareholder value.

And why not. Permanis is PepsiCo's bottler in Malaysia. In July last year, PepsiCo extended the rights of Permanis for manufacturing and selling its beverages in Malaysia to ten years until 30 June 2020. In their three years together, the firms have introduced three new PepsiCo brands, namely Tropicana Twister, 7-Up Revive and Mountain Dew, to the Malaysian market, all of which have been received well.

So, there is no reason why CI Holdings would not hold out for a decent price. And it's not like Asahi can't afford it. Despite making two purchases this week, the firm has an overseas M&A warchest valued at US$4.9bn.

But if Asahi is intent on making Permanis its third acquisition in one week, it may need to up its offer. CI Holdings clearly has a figure in mind and does not appear prepared to part with its subsidiary for just any sum.

 


BLOG

I've got the brains, you've got the water. Let's make lots of money

Do you have a water source in your garden? By which, I mean a spring, rather than an outside tap....

BLOG

The just-drinks Weekly Round-Up

Here's a round-up of the top stories on just-drinks last week, featuring PepsiCo and Coca-Cola Co, Castel, Molson Coors and the cachaca sector....

BLOG

The real stars behind supermarkets' Scotch success

There was a big focus on supermarkets and their Scotch offerings this week when a couple of own-brand malts scooped top awards at the International Wines and Spirits Competition (IWSC)....

BLOG

San Francisco's 21st Amendment breaks ground on new site - video

You can't seem to move at the moment for news of US craft brewers expanding....

just-drinks homepage



Forgot your password?