August 16, 2002 | 1642 IST
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Money > PTI > Report August 16, 2002 | 1642 IST |
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Coke to sell 49% stake in Indian operationsUS cola giant Coca-Cola on Friday announced divestment of 49 per cent stake in its wholly owned subsidiary, Hindustan Coca-Cola Beverages Pvt Ltd, in favour of bottlers, employees and private investors, a day ahead of the August 17 deadline set by the government.
It said ICICI Securities and ABN Amro Corporate Finance will advise it on the divestment and in identifying potential investors, while law firm Amarchand Mangaldas has been retained as legal advisors to the issue. The statement said Hindustan Coca-Cola Holdings, which owns and operates 26 plants and 60 distribution centres, would complete the divestment process in as short a span of time as possible. "The divestment will be made on a private placement basis. Shares will be offered to employees, trusts, present and former Coca-Cola bottlers, suppliers, business associates and private investors," it said. The decision to divest was arrived at after government turned down repeated pleas of the company to either exempt it from divestment or allow a five-year moratorium on the ground of poor financial health and adverse market conditions. "We are happy to bring in significant Indian ownership and broad-base the stakeholders in our beverage business like we have done elsewhere around the world. It certainly will fuel the further integration of our business into the Indian environment and into local Indian communities," president of Coca-Cola India Alex von Behr said. The company has invested about Rs 3,307 crore (Rs 33.07 billion) in Indian operations in its eight-year stint but has made cash profits only in 2001, with net profit still awaited. ALSO READ:
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While 39 per cent stake would be divested to private investors and bottlers, another 10 per cent would be offered to the company's employees in India, Coca-Cola India said in a statement in New Delhi.