Varun Beverages Limited (VBL) has announced that the board of The Beverage Company Proprietary Limited (Bevco), its subsidiary, and Twizza Proprietary Limited (Twizza), its step-down subsidiary, have approved a merger of Twizza with Bevco, subject to applicable laws in South Africa.
Twizza manufactures and distributes own branded non-alcoholic beverages in South Africa. Bevco manufactures and distributes licensed beverages under PepsiCo Inc. and its own brands in South Africa. Bevco also holds exclusive franchise rights from PepsiCo Inc. in South Africa, Lesotho and Eswatini.
For the financial year ended June 30, 2025, Twizza reported a turnover of ZAR 1,695 million. Bevco reported a consolidated turnover of ZAR 4,818 million for the same period.
Since Twizza is a wholly-owned subsidiary of Bevco, the merger involves no cash consideration or issuance of new shares. The entire share capital of Twizza will stand cancelled once the merger becomes effective. VBL's shareholding remains unchanged as the transaction is between two foreign subsidiaries.
The transaction is classified as a related party transaction and will be carried out at arm's length. The merger is aimed at combining business operations and optimising operational costs, subject to compliance with applicable South African laws.
VBL disclosed the development to the National Stock Exchange of India and BSE Limited on July 2, 2026, under Regulation 30 of the SEBI Listing Regulations.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.