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Thursday, January 17, 2013

Coca-Cola FEMSA in $700 million deal to purchase Mexican bottler, (NYSE: KOF)

Mexican bottler Coca-Cola FEMSA SAB De CV said on Thursday that it has agreed to purchase Grupo Yoli, maker of a popular lime-flavored soft drink, in a deal valued at around $700 million where the Coke giant will pay with shares and absorb debt. Grupo Yoli, which operates in the western states of Guerrero and Oaxaca, will get 42.4 million of newly-issued Coca-Cola FEMSA L Shares, each valued at 184 pesos. Additionally, Coca-Cola FEMSA will absorb 1 billion pesos in net debt.As part of the agreement, Coca-Cola FEMSA will also gain a 10.14 percent stake in Promotora Industrial Azucarera, boosting its holding in one of Mexico's top sugar producers to 36.3 percent.The Yoli deal must still be approved by regulators and shareholders.The Mexican bottler has recently expanded its footprint in Mexico and abroad via acquisitions. In December, Coca-Cola FEMSA reached a deal to buy 51 percent in Coca-Cola Co's Philippine bottling operations for $688.5 million in cash.

Coca-Cola FEMSA, S.A.B. de C.V. (Coca-Cola FEMSA) produces and distributes Coca-Cola, Fanta, Sprite, Del Valle, and other beverages of The Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City, as well as southeast and northeast Mexico), Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil (greater Sao Paulo, Campinas, Santos, the state of Mato Grosso do Sul, part of the state of Goias, and part of the state of Minas Gerais), Argentina (federal capital of Buenos Aires and surrounding areas) and the Philippines (nationwide), along with bottled water, juices, teas, isotonics, beer, and other beverages in some of these territories. Shares of KOF fell by 0.2% or $-0.31/share to $156.92. In the past year, the shares have traded as low as $94.52 and as high as $158.24. On average, 100367 shares of KOF exchange hands on a given day and today's volume is recorded at 95087.