Coca Cola Amatil (CCA) has signed an agreement through which Coca-Cola Company will invest $500 million into the Indonesian subsidiary of CCA in return for an ordinary equity ownership interest of 29.4%.
CCA’s Group Managing Director Alison Watkins commented: “This is an exciting development for both CCA and The Coca Cola Company. With a population of more than 240 million and a fast-growing emerging middle class, Indonesia is a key growth market for CCA. In partnership with The Coca Cola Company, we have developed a plan to support up-weighted infrastructure and capability development to enable us to strength our market position for the long-term and generate returns above the cost of capital for CCAI”.
Ahmet Bozer, President of Coca-Cola International, said: “ This investment will allow us to capture the growth opportunity in one of the largest and most dynamic countries in the world as we enable our system to be even more responsive to consumer and customer needs”.
CCA said that the agreement was conditional on the approval of its own shareholders, that of the Coca-Cola Company board of directors, and the satisfaction of relevant Indonesian regulatory requirements.