Coca-Cola To Buy Beverage Business Of China Culiangwang In $400.5 Mln Deal

(RTTNews) - Coca-Cola Company (KO) agreed to buy the beverage business of China Culiangwang Beverages Holdings Limited for an enterprise value of $400.5 million or HK$3.10 billion, the Chinese drinks firm said in a filing to the Hong Kong stock exchange.

An enterprise value of $400.5 million, on a cash free and debt free basis, represents a significant premium over the daily market capitalisation of China Culiangwang in the last three years.

Separately, China Culiangwang Beverages Holdings said that it proposed to raise not less than approximately HK$794.6 million before expenses by issuing not less than 3.97 billion Offer Shares and not more than approximately HK$1,059.8 million before expenses by issuing not more than 5.299 billion Offer Shares at the subscription price of HK$0.20 per Offer Share on the basis of 2 Offer Shares for every 1 Share in issue on the Record Date.