Financial Daily from THE HINDU group of publications
Friday, Feb 28, 2003
Financial Daily from THE HINDU group of publications Friday, Feb 28, 2003 |
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Corporate
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Announcements Coke disinvests 49 pc equity Our Bureau
NEW DELHI, Feb. 27 HINDUSTAN Coca-Cola Holdings Pvt Ltd (HCCHPL), the Indian arm of the Coca-Cola Company, on Thursday announced that it had completed the placement of 49 per cent of its equity in its bottling subsidiary, Hindustan Coca-Cola Beverages Pvt Ltd (HCCBPL), in favour of Indian shareholders. The divestment was made on a private placement basis, a press release issued by the company stated. Out of the 49 per cent, HCCHPL had in October, last year, transferred 10 per cent of its equity shares in HCCB, in favour of two Hindustan Coca-Cola beverages employee and welfare trusts. Of the remaining 39 per cent, a little over 6 per cent was placed with former and current bottlers and suppliers, representing the entire subscription applied for by them. The rest was placed with financial, private and high net worth investors, the press release added. The original conditions of entry had permitted HCCB to remain a majority controlled subsidiary of HCCHPL. Investment bankers ICICI Securities and ABN-Amro Corporate Finance identified potential investors, while the law firm of Amarchand & Mangaldas acted as legal advisors. In a written statement, Mr Sanjiv Gupta, Deputy President, Coca-Cola Company India Division, said, "This development will enable Indian shareholders to share the prosperity of our downstream beverage subsidiary. The downstream beverage subsidiary is in the process of investing about $100 million in its business operations during the current year. This investment will fuel additional upstream and downstream investments in the economy." Hindustan Coca-Cola Beverages owns and operates 26 plants and 60 distribution centres located across the country, and the company has 30 contract packers to augment its production capacity.
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