Varun Beverages Limited approves acquisition of The Beverage Company Proprietary Ltd, South Africa

The Board of Directors of Varun Beverages Limited (VBL) at their meeting held today (started at 11:00 A.M. and concluded at 11:30 A.M.) has considered and approved to acquire 100% stake in the business conducted by The Beverage Company (Proprietary) Limited, South Africa along-with its wholly-owned subsidiaries (hereinafter referred as "Bevco") with an option to accept minority coinvestment from large equity fund subject to regulatory and other approvals (if any) including but not limited to PepsiCo Inc. and Competition Commission South Africa.

Bevco is engaged in the business of manufacturing and distribution of licensed (PepsiCo Inc.) / own-branded non-alcoholic beverages in South Africa. Bevco has franchise rights from PepsiCo Inc. in South Africa, Lesotho and Eswatini. Further, it also has distribution rights for Namibia and Botswana.

The acquisition will enable VBL to expand its geographical footprint in Africa.

The proposed transaction is planned at an Enterprise Level is valued at ZAR 3 Billion (INR 13.2 bn; 1 ZAR = 4.4 INR).

Source : Equity Bulls

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VarunBeverages VBL Acquisition TheBeverageCompany SouthAfrica