Jubilant promoters eye Rs 2,000 crore via stake sales for Hindustan Coca-Cola Beverages deal

Time of India

3 days ago

Jubilant Bhartia Group
promoters have initiated a process to sell minority stakes in their listed companies to raise Rs 2,000 crore to part-fund the
acquisition
of a 40% stake in
Hindustan Coca-Cola Beverages
(HCCB), people familiar with the matter said.
The proceeds from the sale of stakes in
Jubilant FoodWorks
,
Jubilant Pharmova
,
Jubilant Ingrevia
and Jubilant Industries will be in addition to the $600 million (Rs 5,100 crore) that
Goldman Sachs Asset Management
has raised to fund the deal. The group is also in the process of divesting non-core assets across its food and pharma businesses to raise money, the people said.
The deal values Coca-Cola's local bottling arm at Rs 31,250 crore including debt.
CCI Nod Came in May
At this enterprise value, the stake will cost Rs 12,500 crore. Morgan Stanley is advising the promoters on the divestment of noncore assets and sale of minority stakes in the listed firms. The Jubilant Bhartia Group did not respond to an email seeking comment. As per the deal structure, Jubilant Beverages will acquire HCCB shares from Coca-Cola entities, while another group company Jubilant Bevco and an investor consortium led by funds managed by Goldman Sachs Asset Management will subscribe to compulsorily convertible preference shares in Jubilant Beverages. The financing structure includes Rs 5,650 crore of debt, CCPS and the remainder through an equity infusion from Jubilant's holding company, Jubilant Bhartia Consumer Ltd.
The deal, announced in December 2024, received approval from the Competition Commission of India on May 1.
Promoters own a 41.9% stake in
Jubilant FoodWorks
, which holds exclusive India franchise rights for US restaurants Domino's Pizza, Popeyes and Dunkin' Donuts and runs Hong's Kitchen. Mutual funds and foreign institutions hold 25.8% and 20.5%, respectively, while the remaining is split among retail and other domestic institutions, as per disclosures by the company. In Jubilant Pharmova (formerly Jubilant Life Sciences), which deals in radiopharma and contract research development of drugs, a majority 50.68% is held by the promoter and promoter groups, while retail and other investors hold 25.06%. Foreign institutions hold 17.22% of the company and the remaining is held between mutual funds and other domestic institutions.
Jubilant Ingrevia, the chemicals company, too has a dominant 51.5% shareholding with the promoters, with the rest split among foreign and domestic institutions and the public.
In Jubilant Industries, the group's agri and performance polymers business, promoters own 74.78%, with retail investors holding 24.89%. The Jubilant Bhartia Group has already started the process of integration with HCCB. While both businesses will draw direct synergies in foods and beverages, Jubilant FoodWorks has decided to halt expansion of its smaller businesses such as Dunkin' Donuts and Hong's Kitchen to focus primarily on Domino's Pizza, which had a store count of 2,179 across 475 cities as of end-March 31.