Summary
PepsiCo, Inc. (PEP) announced on January 27, 2011, that it has received all necessary regulatory approvals from the Federal Antimonopoly Service of the Russian Federation to proceed with its acquisition of Wimm-Bill-Dann Foods OJSC (WBD). This marks a significant milestone, as all regulatory hurdles required for the transaction have now been cleared. The company anticipates closing the acquisition, subject to customary closing conditions, around February 8, 2011. Upon completion, PepsiCo is expected to hold approximately 77% of WBD's outstanding ordinary shares. Furthermore, PepsiCo has outlined its intention to offer remaining WBD shareholders the opportunity to sell their shares in May-June 2011 at a price consistent with the acquisition terms, expected to be the ruble equivalent of $132 per ordinary share ($33 per ADS).
Key Highlights
- 1PepsiCo has secured all required regulatory approvals from the Russian Federal Antimonopoly Service for the acquisition of Wimm-Bill-Dann Foods OJSC (WBD).
- 2The acquisition is expected to close on or about February 8, 2011, subject to other customary closing conditions.
- 3Upon closing, PepsiCo will own approximately 77% of WBD's total outstanding ordinary shares.
- 4PepsiCo plans to provide an opportunity for remaining WBD shareholders to sell their shares in May-June 2011.
- 5The price for the potential sale of remaining shares is expected to be the ruble equivalent of $132 per ordinary share or $33 per American Depositary Share (ADS).
- 6This acquisition is a significant step for PepsiCo's expansion in the Russian market.