Hong Kong Swire to sell China plant

- Last updated on GMT

Related tags: Carbonation

Swire Pacific has confirmed it is selling its interest in a drinks
plant in China to its joint venture partner, Coca-Cola (China), for
Yuan 155 million (€19m) and then buying a minority stake in the
facility.

Swire Pacific has confirmed it is selling its interest in a drinks plant in China to its joint venture partner, Coca-Cola (China), for Yuan 155 million (€19m) and then buying a minority stake in the facility.

Swire and Coca-Cola (China), a wholly-owned unit of Coca-Cola South Asia, have a combined 86.1 per cent stake in the facility. The remaining 13.9 per cent of the plant is owned by Dongguan Huaxin Industry & Commerce, a unit of the Dongguan government.

Swire said Coca-Cola (China) will buy Swire's 87.5 per cent share of their combined interest in the Dongguan-based non- carbonated drinks plant for Yuan 193.5 million.

Swire will then buy Dongguan Huaxin's stake in the plant for Yuan 38.5 million, it said.

Because the price makes up less than 3 per cent of Swire's consolidated net assets, no shareholder approval is needed for the deal, although it will lapse if all the necessary approvals from relevant government authorities in the mainland are not received in 60 days.

Swire is selling its interest in a drinks plant in China to its joint venture partner, Coca-Cola (China) Investment, for Yuan 155 million.

Related topics: Processing & Packaging

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