China Based Citic to Sell Stakes in Swire Pacific Joint Ventures
Published By : 22 Jul 2015 | Published By : QYRESEARCH
China based Beverage Company, Citic has finally declared that it would be selling the minority share in its joint ventures for beverages in China in order to build partnership with Swire Pacific. The joint venture would be valued at 1.25 billion Yuan. The sale and the approvals that are remaining pending by regulators will eventually help Citic in fulfilling the plan that it has for rationalizing the huge portfolio that it owns.
The portfolio consists of financial services, metals, oil, processing, construction, heavy industries, telecommunications, and property. Senior officials at Citic expressed that Swire Pacific and Citic boast of a positive and long business relationship with cooperation in several areas of business over a significantly long period of time. The sale strategy is in sync with the strategy of Citic for consolidating resources for developing and eventually reinforcing the leadership that it will have in some of the core business segments.
Swire Pacific is a company for which more than 37% is managed by John Swire and Sons, U.K. based company that is privately owned. Swire Pacific is one of the oldest and largest conglomerates of Hong Kong that has its operations in the areas of consumer sports goods, waste management, beverages, marine services, aviation, cars, and property development.
Citic has it in the pipeline to finally sell off 15% of the stake in the company Swire BCD. This will be done with a view to ensure that Swire Pacific becomes the sole owner for the entire unit. Swire BCD owns the bottling plants of Swire Pacific Coca Cola in Hangzhou, which lies in the Zhejiang, Hefei, Zhengzhou, Nanjing, and Xian provinces of China. The company will also be transferring 20% interest to Swire Coca Cola Beverages Hefei.