Singapore GIC buys into Manila’s Pepsi -paper

From Reuters, Jan 30 2008

MANILA, Jan 31 (Reuters) – The Government of Singapore Investment Corp has bought a 9.5 percent stake in the initial public offering of Pepsi-Cola Products Philippines Inc., a local newspaper reported on Thursday.

The Philippine Star, quoting stock market sources, said GIC invested in the IPO of Pepsi Bottling Group’s (PBG.N: Quote, Profile, Research) exclusive licenced bottler in Manila.

Company officials and underwriters of the issue were unable to immediately confirm the report. GIC did not immediately comment on the report.

GIC, which manages Singapore’s reserves, is the island state’s biggest wealth fund. It says on its Web site that it manages well over $100 billion.

The newspaper reported Pepsi-Cola Products raised nearly 4 billion pesos ($98 million) from the public offer which was completed on Monday. It will list its shares on Friday.

The IPO was priced at 3.5 pesos, the lower end of the company’s indicative price range. The company had planned to sell 1.14 billion shares, or more than one-fifth of its capital.

Proceeds from the listing will be used in part to finance project expansion, both for carbonated and non-carbonated drinks.

Pepsi-Cola Products competes with Coca-Cola Bottlers Philippines Inc, which is now 100-percent owned by Atlanta-based Coca-Cola Co (KO.N: Quote, Profile, Research).

(Reporting by Karen Lema; Editing by Valerie Lee)