HONG KONG – American softdrink giant Coca-Cola has reportedly agreed to acquire the beverage business of China Culiangwang Beverages Holdings Ltd for about USD400 million, marking Coke’s first acquisition in China since 2010.

The USD400-million acquisition includes debts and China Culiangwang, in a statement to the Hong Kong stock exchange, said the company will continue to develop its consumer products business.

China Culiangwang manufactures red bean and green drinks and owns and sells “Cu Liang Wang” branded beverages and food products.

Meanwhile, China Culiangwang announced plans to raise raise up to HKD1.06 billion (USD137 million) in a rights issue as it seeks to strengthen its capital and reduce debt.

The Hong Kong-listed company said it plans to sell up to 5.30 billion new shares at a price of HKD0.2 each to its existing shareholders, on the basis of two offer shares for every one share held.

The offer price represents a 78 percent discount to its latest trading price of HKD0.90 Wednesday, it added. – BusinessNewsAsia.com