Sunday , July 21 2019
Home / chile / Coca-Cola's business strategy after selling 7.32% of its stake in the Andean Serie B

Coca-Cola's business strategy after selling 7.32% of its stake in the Andean Serie B




The surprise prompted Coca-Cola's decision to sell 7.32% of the B shares of the Embotellador Andin. Not just for the "go" gesture on behalf of the company (there is another similar percentage in Serie A), but for a limited time in which the operation will take place: the order book is open Tuesday and will be closed today at 2:00 pm Friday more than 69 million shares corresponding to the percentage of participation.

But this is not the first step Coca-Cola has taken in that direction. In 2011, the company sold its stake in Embonor – the second Coca-Cola wholesaler in Chile – Rentas Libra Holding, while globally, Coca-Cola CEO James Quincey has already given light to what the company will have in terms of strategy.

In an interview for the Financial Times in May 2017 (a few days after taking office, replacing historical Muhtar Kenta), he noted that "Coca-Cola was and will always be the heart and soul of a company, but the company can be bigger than that," adding that it is necessary to break the internal culture that is too focused on the same brand.

And the last action showed that. In August 2018 he announced the purchase of Costa Coffee, while in Chile, together with companies from that system, acquired the Guallarauco operation.

"Coca-Cola constantly assesses the most efficient way of using capital, including occasional changes in our investment in bottling, from re-franchising, as we have done so many times over the last few years, to changes in our investment in bottling. our interests in Coca-Cola Andina will enable Coca-Cola to redirect capital, which will be of use to Coca-Cola Andin and the Coca-Cola system as a whole, "the company said on Tuesday after the scope of the operation.

Who goes in?

The operation opens the door to speculations on who might enter the property of Andean. Guillermo Araya, Managing Director of Estudios de Renta 4, explained that the shares of the B series, since they are not "policy" (only two directors, while Series A selects 12), receive 10% more dividends, "for a person who wants to have more & # 39; splitting action, it's a good investment. "

Although it does not rule out that it could be a more in-depth job, "in the sense of warning that it will be closed on Tuesday Tuesday, and perhaps the buyer is already closed."

In any case, Araya dramatized the sale, saying that "what Coca-Cola had given up its economic power, not its political power," since at least so far it retains participation in Serie A.

During the day, the Andine Serie B share was closed at $ 2,525 per share, which is 0.98 percent lower than the previous day, keeping the median performance on Tuesday, with paper dropping by 4.07 percent.


Source link