Tingyi (Cayman Islands) Holding Corp. and PepsiCo Inc. Finalize Strategic Alliance in China

Tingyi (Cayman Islands) Holding Corp. and PepsiCo Inc. announced they have completed their transaction to create a strategic beverage alliance in China. The alliance was approved by the shareholders of Tingyi in February and received regulatory approval on March 29, 2012. As part of the alliance, Tingyi's beverage subsidiary – Tingyi-Asahi Beverages Holding Co Ltd (TAB), is now PepsiCo's franchise bottler in China. TAB will partner with PepsiCo's current bottlers to manufacture, sell and distribute PepsiCo's carbonated soft drink and Gatorade brands. In addition, PepsiCo and TAB will begin co-branding their respective juice drink brands using the Tropicana brand name under license from PepsiCo. PepsiCo will retain branding and marketing responsibilities for these products. Under the terms of the alliance, PepsiCo has contributed its indirect equity interests in its company-owned and joint venture bottling operations in China to TAB and received as consideration a 5% indirect equity interest in TAB. PepsiCo has an option to increase its indirect holding in TAB to 20% at its sole discretion by 2015. The shareholdings of PepsiCo's existing Chinese joint venture partners in the joint venture bottling operations will not change as a result of the transaction.