FRIDAY, 10.30AM
PEPSICO International, which re-entered the SA market amid much fanfare three years ago, has applied for the voluntary liquidation of its local bottler New Age Beverages.
The liquidation application has been confirmed by NAB. The company has been experiencing cashflow problems for some time, and had approached the bloc of African-American shareholders who hold a majority stake in the comapny, for additional capital. This was agreed to with the proviso that other partners be involved. The other parties involved include Pepsico (with 25% of the equity) and local black business (8%) including Kaizer Chiefs MD Kaizer Motaung, the Mineworkers’ Investment Company, the SA Clothing and Textile Workers’ Union, and Standard Bank asset management division.
The deal apparently fell through when Pepsico refused to provide surety for a R300-million loan from Standard Bank.
It is believed that NAB is not actually insolvent, and a judicial officer will be appointed to keep the company trading under protection from its creditors. NAB chairman Kehla Mthembu, who was recently appointed chairman of Sun International, is expected to step down from the helm of NAB.