South Korea's Lotte Chilsung Beverage has offered to buy nearly 58% stake of Pepsi-Cola Products Philippines. Lotte Chilsung currently holds an approximately 42% stake in Pepsi-Cola Products Philippines. On the other hand, U.S. beverage giant PepsiCo Inc. (PEP) owns at least 25% stake of Pepsi-Cola Products Philippines. Lotte Chilsung now wants to pay PHP1.95 per share to acquire up to about 2.13 billion shares which is equivalent to a 39% premium based on the closing of Philippine Stock Exchange last Thursday with a closing price of PHP1.40. (a)If you will be hired by Lotte Chilsung Beverage as its consultant in the said in the said intended purchase, what advice will you give? (b)What are the necessary legal steps that you need to undertake to make the acquisition valid? - (c) How about if you will be hired as consultant to represent the minority shareholders of Pepsi-Cola Products Philippines, what advice will you give to those shareholders who are opposed to the impending take over of Lotte Chilsung Beverage?
South Korea's Lotte Chilsung Beverage has offered to buy nearly 58% stake of Pepsi-Cola Products Philippines. Lotte Chilsung currently holds an approximately 42% stake in Pepsi-Cola Products Philippines. On the other hand, U.S. beverage giant PepsiCo Inc. (PEP) owns at least 25% stake of Pepsi-Cola Products Philippines. Lotte Chilsung now wants to pay PHP1.95 per share to acquire up to about 2.13 billion shares which is equivalent to a 39% premium based on the closing of Philippine Stock Exchange last Thursday with a closing price of PHP1.40.
(a)If you will be hired by Lotte Chilsung Beverage as its consultant in the said in the said intended purchase, what advice will you give?
(b)What are the necessary legal steps that you need to undertake to make the acquisition valid?
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(c) How about if you will be hired as consultant to represent the minority shareholders of Pepsi-Cola Products Philippines, what advice will you give to those shareholders who are opposed to the impending take over of Lotte Chilsung Beverage?
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