Shares of Varun Beverages skyrocketed 15% and hit a 52-week high of Rs 1,380 on 20 December after the company announced the acquisition of South Africa-based The Beverage Company (BevCo), along with its wholly-owned subsidiaries.

In its regulatory filing, the company said, “The board of directors at their meeting held on 20 December approved to acquire 100% stake in the business conducted by The Beverage Company (Proprietary) Limited, South Africa along-with its wholly-owned subsidiaries (BevCo) with an option to accept minority co-investment from large equity fund subject to regulatory and other approvals (if any) including but not limited to PepsiCo Inc. and Competition Commission South Africa.”

The said acquisition is expected to be completed before 31 July 2024.

Bevco manufactures and distributes licensed PepsiCo Inc. and also has its own-branded non-alcoholic beverages in South Africa. The South African-based company has PepsiCo’s franchise rights in Lesotho, Eswatini, and South Africa and also has distribution rights for Botswana and Namibia.

In its regulatory filing on 19 December, the company said that it has also signed an MoU (memorandum of understanding) with the Government of Jharkhand for its proposed manufacturing plant in Patratu, Jharkhand.

At 2:25 pm, the shares of Varun Beverages were trading 8.22% higher at Rs 1,268 on NSE.