Philippine food and beverage giant San Miguel Corp has repurchased the local Coca-Cola bottling company after selling it only two years before to Australia's Coca-Cola Amatil.
The repurchase consists of a combination of stock swap, cash and debt valued at A$2.25 billion $1.24 billion for 65% in Coca-Cola Philippines.
In 1997, San Miguel sold its 70% stake in Coca-Cola Philippines to Coca-Cola Amatil in a $2.7 billion stock swap. By repurchasing 65% for $1.24 billion of Coca-Cola Philippines, San Miguel has clearly profited from the two-year repo transaction, while Coca-Cola Amatil is expected to take a loss.
Surprisingly, by accounting magic Coca-Cola Amatil will recognize not a loss, but a gain...
