INDIA: Coca-Cola given extension on divestment

The Indian subsidiary of the Coca-Cola Co. has been granted a further six months by the Indian government to divest 49% of its equity to Indian investors. Hindustan Coca-Cola Holdings Private Limited has until February 28 2003 to comply with the divestment conditions.

Instead of the public offering which had been anticipated, Coca-Cola announced in August that it had opted for a private placement, proposing to sell 39% of its equity to private investors and business partners and the remaining 10% to employees.

The company had originally requested a waiver from the divestment stipulations, which govern investment by foreign companies in India, but this was denied by the government.

---