LOTTE Chilsung Beverage Co. Ltd. plans to continue its tender offer of shares in Pepsi-Cola Products Philippines, Inc. (PCPPI) by mid-May after getting approval from the Securities and Exchange Commission (SEC) to submit its pending documents over the next three weeks.

In a letter to PCPPI disclosed to the stock exchange on Thursday, Lotte Chilsung said the SEC had approved its request to extend the deadline for submitting its amended tender offer report until May 13.

“Lotte Chilsung will file the amended tender offer report with updated valuation and fairness opinion… until May 13, 2020. Upon filing…, Lotte Chilsung will immediately re-open and resume the mandatory tender offer and conduct the same for the next 10 business days,” it said.

Lotte Chilsung was buying shares in PCPPI through a tender offer that started in December. However, the SEC ordered the offer’s suspension because of supposed issues in the conduct of valuation and fairness opinion of the shares.

Last week, Lotte Chilsung said it had asked the SEC to allow the late submission of its amended tender offer report before continuing with the acquisition of PCPPI shares. The SEC approved the request, according to Lotte Chilsung’s newest letter to PCPPI.

Lotte Chilsung is planning to buy up to 2.13 billion shares in PCPPI, equivalent to 57.78% of its outstanding capital stock as of end-September. The company, which currently holds a controlling stake in PCPPI, said the move is part of a strategy to raise its economic interest in the Philippines-based company.

Lotte Chilsung is a Korean conglomerate that manufactures soft drinks, food and other beverages. PCPPI is the licensed bottler of PepsiCo, Inc. and Pepsi Lipton International Ltd. in the Philippines which handles brands such as Pepsi, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting, Premier, Milkis and Aquafina.

Shares in PCPPI at the stock exchange stood at P1.91 each on Thursday, up 10 centavos or 5.52% from the previous session. — Denise A. Valdez

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