Coca-Cola to buy China juice maker for $2.4 billion

US soft drinks giant Coca-Cola said today it planned to buy Chinese juice maker Huiyuan Juice Group in a$2.4 billion deal that would be its biggest acquisition in China.

Coca-Cola will offer 12.20 Hong Kong dollars ($1.6) per share in Hong Kong-listed Huiyuan, it said in a statement, adding that three shareholders holding a total of 66 %in the company had accepted the offer.

"It is the largest proposed transaction in China and the second largest for the Coca-Cola Company," the company said in an email Coca-Cola said it intended for Huiyuan, one of China's best-known juice brands, to carry on its business, but that it would later review its operations.

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Idea Changes Spice Life

One of the early starters in the GSM mobile space but restricted to regional operations, the B K Modi-controlled Spice Communications on Wednesday was acquired by Idea Cellular of the AV Birla group for Rs 2,716 crore.The acquisition price is almost Rs 665 crore more than the market price. The closing price of the share was Rs 72.15 on the Bombay Stock Exchange on Wednesday. The Spice Communications scrip surged by 33% after the announcement. The company has a market capitalisation of Rs 4,9991 crore. Idea Cellular's scrip gained a 2.09% on the BSE, to close at Rs 102.05.

The development signifies that in the booming telecom sector there's no room for companies with limited operations,restricted to a few circles. Spice operates in Punjab and Karnataka circles.

Idea has acquired the Modi family's stake of 40.8% in Spice at Rs 77.30 a share, much above the expected Rs 62 a share.Idea said it would merge Spice with itself through a share swap where Spice shareholders would get 49 Idea shares for every 100 Spice shares held. It will also pay an additionalRs544croretoModi as non-compete fee.

The acquisition of Spice would give Idea straightaway two existing circles of Punjab and Karnataka with a subscriber base of 4.4 million.Currently, Idea is present in 11 circles and has a user base of over 26 million. It has licences for there mining circles.

Further, Idea along with Telecom Malaysia International (TMI), which holds 39.5% stake in Spice, would make an open offer for additional 20% stake in Spice at the same price at which Idea has bought the Modi family's share.

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Value from family differences

It was a terse note on June 18, 2005 from Kokilaben D Ambani that many thought would put an end to a public spat between her two sons-Mukesh and Anil Ambani-over ownership of the Reliance empire. Three years later, the spat continues, the latest over Anil's plans for a stake sale in his flagship Reliance Communications (RComm) to South Africa's MTN. This time, no one's stepping in, not even the matriarch. Paradoxically, after the split, both sides of the Reliance empire have grown manifold in value under the two brothers. Is that why no one's complaining?

In her 2005 statement, Kokilaben Ambani said, "With the blessings of Srinathji, I have today amicably resolved the issues between my two sons keeping in mind the proud legacy of my husband. I am confident that Mukesh and Anil will uphold the values of their father and work towards protecting and enhancing value of over 3 million shareholders of the Reliance group."

Mukesh, who got Reliance Industries Ltd (RIL) and the erstwhile Indian Petrochemicals Corporation Ltd, and Anil, who took control of what was then Reliance Infocomm, Reliance Energy and Reliance Capital, did indeed protect and enhance shareholders' interest. They added new businesses and pumped in much investment and vigour into existing ones.

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