July 19, 2019 / 7:55 AM / 5 months ago

UPDATE 1-PepsiCo offers $1.7 bln to buy South Africa's Pioneer Foods

(Adds CEO comments, details, adds shares)

JOHANNESBURG, July 19 (Reuters) - PepsiCo has made a $1.7 billion offer to buy South Africa's Pioneer Food Group the companies said on Friday, boosting the target's shares by nearly 30%.

The U.S. drinks and snack group said Pioneer Food's product portfolio was complementary and would help PepsiCo to expand in sub-Saharan Africa by boosting its manufacturing and distribution capabilities.

PepsiCo offered 110 rand ($7.94) per Pioneer Foods ordinary share, the companies said, with the news lifting the South African company's shares by 28.8% to almost 100 rand.

"Pioneer Foods forms an important part of our strategy to not only expand in South Africa, but further into sub-Saharan Africa as well," PepsiCo Chairman and CEO Ramon Laguarta said in a statement.

Pioneer Foods, which has brands ranging from drinks to grain products such as Weet-Bix and Liqui-Fruit, exports to more than 80 countries. ($1 = 13.8613 rand) (Reporting by Tanisha Heiberg Editing by David Goodman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below