Shares of PepsiCo’s bottling partner Varun Beverages jumped 1.7% to their intraday high of Rs 657 on the BSE after the company announced that it has completed the acquisition of a 39.93% stake in Lunarmech.
This makes Lunarmech a wholly-owned subsidiary of Varun Beverages.
“In continuation of our intimation dated November 12, 2024, we would like to inform you that today (01:47 P.M. IST) our company has acquired 39.93% of the issued and paid-up equity share capital of Lunarmech, and accordingly, it has become a wholly-owned subsidiary of our company with effect from December 16, 2024,” the company said in a filing to the exchanges.
Earlier, in November, the company had announced via an exchange filing that its board had approved a share purchase agreement to acquire the remaining 39.93% of the issued and paid-up equity share capital of Lunarmech Technologies.
This was stated to be for a consideration of Rs 200 crore.
“The board of directors of Varun Beverages Limited (“Company”) at their meeting held today (started at 4:45 P.M. and concluded at 5:20 P.M.) inter alia considered and approved the following: Share Purchase Agreement between our company and the sellers to acquire the remaining 39.93% of the issued and paid-up equity share capital of Lunarmech Technologies Private Limited (a subsidiary of the company) for Rs 2,000 million,” Varun Beverages had said in the previous filing.
PepsiCo’s bottling partner had reported a 22.3% year-on-year (YoY) jump in its net profit at Rs 628.83 crore for its third quarter ended September 2024, while its revenues reported a jump of 24.1% YoY to Rs 4,804.68 crore in Q3CY24.
The shares of Varun Beverages have increased by 48% in the last year and by 31% in the current year so far, according to the BSE analytics.
Source: Economic Times