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Coca-Cola's business strategy after selling 7.32% of its stake in Andina Serie B




Surprise was caused by the decision of Coca-Cola to sell 7.32% belonging to it in the B series Embotelladora Andina. Not only for the “leaving” gesture on behalf of the company (it has another similar percentage in Series A), but also for a limited time during which the operation will be performed: the order book was opened on Tuesday and closed today at 14:00 to reward on Friday more than 69 million shares, corresponding to the percentage of participation.

But this is not the first step Coca-Cola has taken in this direction. In 2011, the company sold its stake in Embonor – another Coca-Cola bottlerunner in Chile – to Rentas Libra holding, while worldwide the general director of the Coca-Cola Company James Quincy has already given light of what will come to the company strategy.

In an interview with the Financial Times in May 2017 (a few days after taking office, replacing the historic Mukhtar Kent), he noted that “Coca-Cola was and always will be the heart and soul of the company, but the company can moreover,“ adding that it was necessary to break with the inner culture, too focused on the same brand.

And the last actions showed it. In August 2018, the company announced the acquisition of Costa Coffee, and in Chile, along with the system companies, they acquired Guallarauco.

“Coca-Cola is constantly evaluating the most efficient way to use your capital. This includes occasional changes in our bottle investments, from re-franchises, as we have done so many times in recent years, to changes in our bottle investments. Our sale of part of our interests in Coca-Cola Andina will allow Coca-Cola to redirect capital, which will benefit Coca-Cola Andina and the Coca-Cola system as a whole, ”the company said on Tuesday after consulting on the volume of operations.

Who is included?

The operation opens the door to thinking about who could enter the property of Andina. Guillermo Araya, manager of Estudios de Renta 4, explained that the B series shares, since they are not “politicians” (they choose only two directors, but A series chooses 12), receive 10% more dividends ”, then for the profile of a person who wants to have more “dividing” actions; this is a good investment. ”

Although this does not exclude that it may be a more closed business, "in the sense that they warn about the closure of one Tuesday on Thursday, and perhaps the buyer is already closed."

In any case, Araya dramatized the sale, stating that “what Coca-Cola did was giving up its economic power, not political power,” given that, at least so far, it retains its participation in Series A.

During the day, Andina Serie B shares closed at $ 2,525 per share, down 0.98% from the previous day, retaining bearish results on Tuesday, when the paper fell 4.07%.


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