Coca-Cola Completes Private Placement Of 49% In Bottling Arm

New Delhi, February 27: | Updated: Feb 28 2003, 05:30am hrs
Coca-Cola India has completed the placement of 49 per cent of its equity share capital in its bottling subsidiary Hindustan Coca-Cola Beverages Private Limited (HCCBPL) in favour of Indian shareholders one day prior to the February 28 deadline.

The disinvestment has been made on a private placement basis. "Out of the 49 per cent, Coke had transferred 10 per cent of its equity shares in HCCB in favour of two Hindustan Coca-Cola Beverages Employee and Welfare Trusts," the company said in a release.

"Of the remaining 39 per cent, a little over six 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," it added.

Investment bankers ICICI Securities and ABN Amro Corporate Finance performed a key role in identifying potential investors. The law firm of Amarchand & Mangaldas acted as legal advisors.

"We are delighted to bring in significant Indian ownership in our beverage business. This placement will enable Indian shareholders to share in the prosperity of our downstream beverage subsidiary," the release said quoting Coca-Cola India deputy president Sanjiv Gupta. The downstream beverage subsidiary is in the process of investing approximately $100 million in its business operations during the current year. "This investment will further fuel additional upstream and downstream investments. We continue to see a bright future for our beverage business in India," Mr Gupta said.