In September, Swire Pacific Limited and John Swire & Sons Limited ("JS&S") completed the sale of 100% equity in Swire Pacific Holdings Inc. (trading as "Swire Coca-Cola, USA") to JS&S (Beverages) Inc., a wholly owned subsidiary of JS&S, for a total consideration of US$3.9 billion. Swire Pacific is expected to gain approximately HK$22.8 billion on disposal and has distributed a special dividend of HK$11.7 billion to shareholders (equivalent to HK$8.120 per 'A' share and HK$1.624 per 'B' share). The significant net proceeds from the transaction will serve to materially reduce net debt for Swire Pacific and strengthen its balance-sheet for future investments in its core divisions in Greater China and Southeast Asia. The Coca-Cola Company has authorised Swire Coca-Cola, USA to retain all of its rights under its existing bottling agreements after the change in ownership. In connection with the transaction, Swire Coca-Cola Limited ("SCCL"), Swire Coca-Cola, USA and JS&S have signed a Management Services Agreement for the provision of management and administrative support services by SCCL in respect of Swire Coca-Cola, USA. The agreement will enable the beverages division to further strengthen its global relationship with The Coca-Cola Company, covering a sizeable franchise population of 877 million.
