Coke divests 49 per cent equity

Hindustan Coca-Cola Holdings Private Limited HCCHPL, the Indian arm of The Coca-Cola Company on Thursday completed the placement of 49 per cent of its equity in its bottling subsidiary, Hindustan Coca-Cola Beverages Private Limited HCCBPL, in favour of Indian shareholders. The divestment was made on a private placement basis.

Out of the 49 per cent, HCCH 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 original conditions of entry had permitted HCCB to remain a majority controlled subsidiary of HCCH at all times. Investment bankers ICICI Securities and ABN Amro Corporate Finance performed a key role in identifying potential investors. The law firm of Amarchand 038; Mangaldas acted as legal advisors. Hindustan Coca-Cola Beverages owns and operates 26 plants and 60 distribution centres across the country.