Pepsi sets voluntary delisting on November 26

MANILA, Philippines — Pepsi-Cola Products Philippines Inc. (PCPPI), the listed manufacturer of PepsiCo drinks in the country, is targeting to delist from the Philippine Stock Exchange on Nov. 26.

In its petition for voluntary delisting filed yesterday, PCPPI said it would submit to the PSE a report containing the results of the tender offer.

The voluntary delisting was already approved by majority of its board of directors during a meeting held last Sept. 9.

PCPPI’s public ownership level was reduced to 2.1 percent following the conclusion of the tender offer conducted by Lotte Chilsung Beverage Co. Ltd. to acquire PCPPI shares from the firm’s shareholders.

As a result of the acquisition, PCPPI’s public float level fell below the 10 percent minimum public ownership rule.

Under the rule, PCPPI has until Dec. 18 to comply with the 10 percent minimum public float requirement, or otherwise be subject to involuntary delisting.

“After due evaluation and study of the options available to the company, the board of directors approved and authorized the voluntary delisting of the company’s shares from the PSE,” PCPPI said in an earlier disclosure.

“Considering the level of its public ownership and the prevailing market conditions, it will not be able to comply with the minimum public ownership requirement by Dec. 18,” it said.

In line with the delisting, Lotte Chilsung will conduct a tender offer to acquire up to 77.86 million common shares held collectively by all shareholders of the company.

However, the shares in the company of Quaker Global Investments BV, the wholly owned subsidiary of PepsiCo Inc., will not be subject to the tender offer.