SWIRE Pacific Industries has decided to push ahead with its US$22 million takeover of loss-making Taiwan Coca-Cola Bottling Co (TCCBC), despite failing to get 100 per cent take-up of its general share offer. China International Trust and Investment Corp (CITIC) has also agreed to sell Swire Pacific a further 25 per cent of BC Development, the holding company for their joint Coca-Cola bottling interests in China. This will bring Swire Pacific's effective interest in BC Development up to a controlling 55 per cent. The sale price is linked to BC Development's results for the year to December 31, but is expected to be about 60 million yuan (about HK$80 million at the official rate). Both agreements are subject to government or regulatory authority approval in their respective countries. Swire Pacific Industries managing director Jim Conybeare said: ''The combination of these two deals shows we are in the Coca-Cola and beverage business in a big way. ''It will give Swire another core business to add to its well-known aviation and property businesses that have been a central part of the group's activities for some time.'' In September, Swire Pacific Industries made a general offer for shares in the Taiwan Coke firm not already held by the group or the Coca-Cola Co - on condition that it was accepted in full. Shareholders controlling about 1.8 per cent of TCCBC's equity capital have refused to sell. Nevertheless, Swire Pacific Industries has agreed to proceed with the acquisition regardless. Swire Pacific holds a 14.5 per cent interest in TCCBC by virtue of its 50 per cent holding in Coca-Cola Swire Beverages, a joint venture with Coca-Cola Co. Once the acquisition has been completed, the ownership of TCCBC will effectively be: Swire Pacific, 63.7 per cent; Coca-Cola Co, 34.5 per cent; and local Taiwanese shareholders, 1.8 per cent. With the change in shareholding, Swire Pacific will assume management responsibility for the company. Mr Conybeare says Swire Pacific can turn the company around and see a return on its investment within two years. One of its first moves will be to sell some surplus assets. When TCCBC expanded rapidly during the 1980s and 1990s it bought a fair bit of land, much of which Swire Pacific now considers unnecessary. Swire Pacific also intends to expand TCCBC to sell teas, beverages and non-carbonated drinks in Taiwan. It seems that some people in Taiwan are not crazy about fizzy drinks. However, both Swire Pacific and Coke anticipated strong growth for the soft drinks market as a whole in Taiwan. Both parties have agreed to inject further capital into TCCBC when necessary. Swire Pacific will also assume management control of BC Development once CITIC completes its 25 per cent sale. It holds a 30 per cent interest in BC Development through its holding in Coca-Cola Swire Beverages. After the transaction, Swire Pacific will have an effective shareholding of 55 per cent, Coca-Cola 30 per cent and CITIC 15 per cent. Mr Conybeare said: ''Bottling is a business where Swire Pacific has considerable experience both in Hong Kong and the US. ''Therefore, it is natural to expand in the Swire Pacific traditional region of Hong Kong, China and Taiwan. ''It is also in line with the Swire Group's long-term strategy of re-establishing core business interests in China.'' BC Development has Coca-Cola franchises and bottling operations in Nanjing, Hangzhou and Xian. Mr Conybeare said he hoped that in the next year to 18 months BC Development would announce further franchise operations and he expected Swire Pacific to contribute perhaps US$100 million to expanding BC Development's mainland operations during the next three to five years.