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




Surprisingly, Coca-Cola decided to sell 7.32% owned by Embotelladora Andina in line B. Not only for the gesture of "leaving" on behalf of the company (it has a similar percentage in Serie A), but for a limited period of time in which the operation will be executed: the order was opened on Tuesday and will be closed today at 2:00 pm on Friday, over 69 million shares corresponding to a percentage.

But this is not the first step Coca-Cola has made in this direction. In 2011, the company sold its stake in Embonor, another Coca-Cola vendor in Chile, to Rentas Libra Holding, while Coca-Cola CEO James Quincey, on the other hand, would lose the company's strategy.

In an interview with the Financial Times in May 2017 (several days after joining the position of Muhtar Kent) he said that "Coca-Cola was and will always be the heart and soul of society, but society can be bigger than that," he added. that it is necessary to break with an inner culture too focused on the brand of the same name.

And the last action showed it. In August 2018, it announced the acquisition of Costa Coffee, while Chile's Guallarauco operations were jointly acquired with the companies of the system.

"Coca-Cola is constantly assessing the most effective way to use its capital, including occasional changes in our bottle investments, from re-franchising, as we have done many times in recent years to changing our bottling investments. Coca-Cola Anda will enable Coca-Cola to redirect capital that will be beneficial for Coca-Cola Andina and Coca-Cola in general, "the company said on Tuesday. been consulted during the operation.

Who will enter?

The operation opens the door to speculation about who could enter Andina's property. Guillermo Araya, manager of Estudios de Renta 4, explained that B Series shares, as they are not "policies" (only two directors are elected, while the A line will choose 12) receive 10% more dividends, for the profile of the person who wants to have more " "action, it's a good investment. "

Although it does not exclude that it may be a closed deal "in the sense that they warn one Tuesday to close on Thursday, and maybe the buyer is already closed."

In any case, Araya has dramatized the sale by saying that "what Coca-Cola has done will renounce its economic power and not its political power", since at least it still maintains membership in Serie A.

During the day, the shares of Andina Serie B closed at $ 2,525 per share, down 0.98% from the previous day, with bear results on Tuesday, where the papers fell by 4.07%.


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