- Update 4:35pm: Adds Danimer Scientific comment.
- PepsiCo (NASDAQ:PEP) appears to have sold a stake in green plastics company Danimer Scientific Inc. (NYSE:DNMR), according to Pepsi's latest 10-Q filing.
- Pepsi said in a footnote in its 10-Q that is recorded an $82M after-tax gain on an investment in an unidentified publicly traded company. The gain was recorded in selling, general and administrative expenses within corporate unallocated expenses. Pepsi, which reportedly had a 6% stake in Danimer, said it subsequently sold all the shares during the second quarter.
- The disclosure in the 10-Q comes after a March 29 Danimer investor slide deck no longer referenced a Pepsi equity stake (says "strong partnerships with CPG Brands, including Pepsi ...) vs a slide deck from Feb. 3 (dated October 2020) that referenced an "equity investment from Pepsi."
- Danimer Scientific completed a SPAC combination with Live Oak Acquisition Corp. at the end of last year. Danimer shares have dropped 48% from a high of around $64 in early February.
- Pepsi wasn't immediately available to comment to Seeking Alpha.
- Danimer Scientific commented in a statement emailed to Seeking Alpha.
- “We are not privy to PepsiCo’s specific holdings or their investment strategy," Danimer Scientific said in the statement. "PepsiCo continues to be a strong strategic partner to Danimer Scientific through a fruitful business relationship and PepsiCo’s seat on Danimer Scientific’s board. We look forward to continuing our relationship in a way that helps them achieve their sustainability goals.”