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




Surprisingly, Coca-Cola's decision to sell the 7.32% stake in the B series of Embotelladora Andina was sold. Not just the gesture of "abandoning" on behalf of the company (there is another similar percentage in Serie A), but for the limited time that the operation will take place: the order was opened on Tuesday and will close today at 2:00 pm to deliver on Friday more than 69 million shares that correspond to the percentage of participation.

But this is not the first step Coca-Cola did in that direction. In 2011, the firm sold its stake in Embonthor – the other coke in Chile – to Rentas Libra Holding, while globally, Coca-Cola's CEO, James Quincy, had already given a light on what would come for the company in terms of strategy.

In an interview with the Financial Times in May 2017 (several days after taking office, replacing the historical Muhtar Kent), he noted that "Coca-Cola is and will always be the heart and soul of the company, but the company may be greater than that ", adding that it is necessary to break through the inner culture too focused on the brand of the same name.

And the latest actions have shown it. In August 2018, it announced the acquisition of Costa Coffee, while in Chile, together with the companies of the system, they took over the operation of Gularauko.

"Coca-Cola is constantly evaluating the most effective way to use its capital, this includes occasional changes to our investment in bottles, from re-franchising, as we've done many times in recent years, to changes in our investments in a flyer. selling some of our interests in Coca-Cola Andina will allow Coca-Cola to divert capital that will benefit from Coca-Cola Andina and the Coca-Cola system in general, "the company said on Tuesday after consulting the scope of the operation .

Who enters?

The operation opens the door to speculation as to who could enter the Andina estate. Guillermo Araya, manager at Estudios de Renta 4, explained that the B-series stocks, because they are not "politicians" (choose only two directors, while Serie A chooses 12) receive 10% more dividends, then for the profile of a person who wants to have more "division" action, it's a good investment. "

Although it does not exclude the possibility that it could be a more open business, in the sense that they warn one Tuesday to close on Thursday, and perhaps the buyer is already closed. "

In any case, Araya dramatized the sales, saying "what Coca-Cola has done is to give up its economic power, not its political power," so, at least until now, it maintains its participation in Serie A.

During the day, the Andina Serie B stock closed at $ 2,525 per share, down 0.98% on the previous day, holding swords Tuesday, where the papers fell by 4.07%.


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