Varun Beverages Ltd.'s board of directors on Tuesday approved the acquisition of The Beverage Company and its subsidiary to expand its geographical footprint in South Africa.
The company will acquire 100% stake for Rs 1,320 crore in the South African soft-drink maker, along with its wholly owned subsidiaries with "an option to accept minority co-investment from large equity fund", an exchange filing said.
The acquisition is subject to necessary approvals from PepsiCo Inc. and the Competition Commission of South Africa.
The Beverage Company is engaged in the business of manufacturing and distribution of non-alcoholic beverages in South Africa. It holds franchise rights from PepsiCo in South Africa, Eswatini and Lesotho. It also has distribution rights for Namibia and Botswana.
The company also signed a Memorandum of Understanding with the government of Jharkhand on Tuesday, for a proposed manufacturing plant in Patratu, with a total capital outlay of Rs 450 crore.
Shares of Varun Beverages closed 3.50% higher at Rs 1,132 per share, as compared with a 0.16% advance in the NSE Nifty 50.
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