Business

Wednesday August 5, 2009

F&N buys stakes in two companies


PETALING JAYA: Fraser & Neave Holdings Bhd (F&N) has sealed a share purchase agreement with F&N Coca Cola Pte Ltd to buy a 10% stake in F&NCC Beverages Sdn Bhd and F&N Coca-Cola (M) Sdn Bhd for RM78.8mil.

In a filing with Bursa Malaysia, F&N said it was required to pay 10% of the purchase price within five working days from the date of the agreement.

It also needs to pay for the remaining 90% in seven days after approvals from the relevant authorities, including the International Trade and Industry Ministry.

F&N Coca-Cola is a unit of The Coca-Cola Co.

Last month, F&N signed a transition agreement with The Coca-Cola Co to sell Coca-Cola and Sprite soft drinks in Malaysia for another 20 months after the expiry of its existing bottling and distribution agreement on Jan 26, 2010.

The transition agreement, with additional new terms, gives F&N the entitlement to launch new brands or categories (except cola and lemon-lime carbonated soft drinks) from Jan 27, 2010 for both domestic and export markets until Sept 30, 2011.

Revenue from Coca-Cola Co products, mainly Coca-Cola and Sprite, amounted to RM421mil, which was 35% of sales from F&N’s soft drinks division for the year ended Sept 30, 2008.


F&N : [Stock Watch] [News]


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