According to a report in Business Daily Africa, sources familiar with the deal reckon that Coca-Cola grew its stake in the juice makers after local shareholders failed to participate fully in a rights issue, hence diluting their shares.
Market estimates in 2011 placed Coca-Cola’s Minute Maid’s stake of Kenya’s juice market at about 11% with Del Monte controlling a significant share. Kenya’s growing middle-class provides a ready market for juice as it increasingly seeks alternative to carbonated soft drinks, in which Coca-Cola enjoys a near monopoly.
The change in ownership in the juice plant is the latest deal to face the Coca-Cola affiliates after Centum raised its stake in the merged Coca-Cola bottlers after buying out minority investors last year. The investment firm increased its stake in the merged unit dubbed Almasi Beverages to 43.5%from 35% in a Sh426 million deal.
Almasi Beverages was the product of the merger of Kisii Bottlers, Mount Kenya Bottlers and Rift Valley Bottlers. The three bottlers have been operating as distinct companies with their own managers, boards of directors and shareholders including Centum, which had 44% stake in Rift Valley, Mount Kenya (28.6%) and 23.8%in Kisii as at March last year.
Source: businessdailyafrica.com
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