Blog: Tingyi shares soar on PepsiCo China deal

Michelle Russell | 7 November 2011

Shares in Tingyi Holding Corp rallied in early trading today (7 November) following the firm's announcement of its deal with PepsiCo on Friday.

Tingyi has purchased PepsiCo's entire China bottling operations in exchange for a 9.5% interest in its drinks business. Before the announcement, Tingyi had suspended trading on the Hong Kong Stock Exchange on Friday, pending the "price sensitive transaction".

Tingyi's Hong Kong-listed shares opened 8.2% higher at HK$22.50 upon resuming trading today. At 1138 GMT, Tingyi was up 9.4% at HK$22.75, while Hong Kong's benchmark Hang Seng Index was up 0.3%.

While the deal will help PepsiCo expand its market share in China, it could also help Tingyi enlarge its product mix - Tingyi sells only diluted fruit juice products and has little exposure to the pure fruit juice sector.

The tie-up is one of only a few in which a Chinese company has acquired a foreign stake within its own borders and not the other way around.

Tingyi may have its hands full however; in 2010, PepsiCo's bottling operations recorded a combined loss of $175.6m, amid rising labour and raw material costs.


BLOG

US beer called "filthy water" as Czech president gets patriotic

The long-running spat between US and Czech brewers has stepped up a notch after the Czech president described American beer as “filthy water” this week....

BLOG

Has beer gone to the dogs? Will it make you feel ruff? Has it got... OH, FORGET IT!

I've stopped short of covering it as a product launch story on just-drinks, but take a look at this. Released this month in the UK, Snuffle Dog Beer is already available in 25 markets....

BLOG

PepsiCo caught in Amazon attack

PepsiCo received high praise when it announced it was to launch its stevia-based Pepsi extension True exclusively on Amazon in the US....

BLOG

Diddy shows he's a Diageo man with prod at Patron

Sean 'Diddy' Combs, the US rapper and entrepreneur, has publicly turned against his apparent former favourite Tequlia brand, Patron, now that he is joint-owner of DeLeón Tequila....

just-drinks homepage



Forgot your password?