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

Putin's Coca-Cola dig misses the mark

The Coca-Cola Co has had its fair share of critics this year, from health campaigners to investor David Winters, who this week called for CEO Muhtar Kent to be replaced....

BLOG

Season of goodwill? Not if you're the UK health lobby

The UK health lobby is always very vocal on alcohol at this time of year, predictably so, and this year is no different. ...

BLOG

Carlsberg builds new life from Copenhagen brewery

“Ah, yes, you've hit upon a very sensitive area,” says Thomas, my guide at the Carlsberg Brewery in Copenhagen last Friday....

BLOG

Scotch whisky firms learn the value of leftovers

Experimentation has long been a watchword in the Scotch whisky industry. It is what has given consumers the huge range of ageing options, from refill hogsheads to virgin oak to Sherry butts....

just-drinks homepage



Forgot your password?