Coke To Divest 49% To Partners, Staff Fund

Hindustan Coca-Cola Holdings today announced its plans to privately place 49 per cent of its equity in its wholly-owned subsidiary, Hindustan Coca-Cola Beverages (HCCB), with resident Indian shareholders at a face value of Rs 10 per share.

Of the 49 per cent, Hindustan Coca-Cola Holdings 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 the resident Indian employee welfare trust and the stock option trust. Each of the two new trusts will be allotted a 5 per cent stake in the company. The stock option trust will allot the shares in favour of employees, based on performance. In the case of the employee welfare trust, the capital appreciation or the income from the share prices will be spent on company welfare.

 

The company, however, refused to comment on the expected value of the 49 per cent stake.