Coca-Cola is planning to raise $41 million (approximately Rs 200 crore) by divesting a 49 per cent stake in its Indian bottling company, Hindustan Coca-Cola Beverages. The divestment process is slated to be complete by February 28, 2003.
Of the 49 per cent, Hindustan Coca-Cola Holdings, the holding company of Hindustan Coca-Cola Beverages, will sell up to 39 per cent to private investors and business partners including licensed bottlers of Coca-Cola, suppliers as well as the former bottlers.
The balance 10 per cent will be divested in favour of local resident Indian employee welfare and stock option trusts.
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The company has, however, requested to the Foreign Investment Promotion Board that the voting rights of 49 per cent should not be passed on to the Indian shareholders since while the company is selling its shares at par value of Rs 10 per share, it is investing about Rs 500 crore in its Indian operations.