Goldman Sachs funds $600 million for Jubilant Bharti's Coca-Cola India bottling unit deal. All you need to know
Goldman Sachs Asset Management has provided $600 million to Jubilant Bhartia Group to partially fund its acquisition of a 40 per cent stake in Coca-Cola Co's bottling unit in India, according to Bloomberg.
The deal was announced in December and received approval from the Competition Commission of India on May 1, 2025.
Goldman Sachs' hybrid fund financed this equity portion by subscribing to the convertible preference shares issued by the group.
The fund is part of the investment bank's private credit strategy, which sits between traditional debt and equity, and is usually longer in tenure.
Convertible preference shares are one of the many ways through which companies can raise money to fund their operations and expansion plans. The lending companies can choose to do so because it enables them to avoid taking on debt, along with limiting the potential dilution of selling additional common stock.
In December, Coca-Cola announced that Jubilant Bhartia is set to acquire a minority stake of 40 per cent in Hindustan Coca-Cola Holdings Pvt.
Coca-Cola is the parent company of the soft drink maker's largest bottler in India called Hindustan Coca-Cola Beverages Pvt.
The total acquisition will cost Jubilant Bhartia $1.5 billion, as reported byBloomberg.
Other than the funding received by the company from Goldman Sachs, the pizza-to-pharmaceuticals conglomerate will raise $600 million in equity and $300 million in debt to fund the remaining $900 million required for the acquisition.
Jubilant Bhartia Group operates in sectors such as pharmaceuticals, food services, and energy solutions. It has franchise rights for global brands like Domino's, Popeyes, and Dunkin'. The group also has businesses in pharmaceuticals, which include contract research, novel drug development, and life science ingredients.
In India, The Coca-Cola Co bottles products such as Thums-Up, Sprite, Fanta, Limca and flagship brand Coca-Cola through subsidiary Hindustan Coca-Cola Beverages Pvt Ltd. It also owns a set of independent bottling companies.
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Time of India
15 hours ago
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Goldman funds $600 million equity for Coca-Cola India unit sale
Goldman Sachs Asset Management has provided $600 million to partially fund the equity investment needed by Indian conglomerate Jubilant Bhartia Group for its purchase of a 40% stake in The Coca-Cola Co.'s bottling unit in India, according to people familiar with the matter. Goldman Sachs Asset Management's hybrid fund financed this equity portion by subscribing to the convertible preference shares issued by the group, said the people, who asked not to be named discussing a private matter. The fund — which is part of the investment bank's private credit strategy — sits between traditional debt and equity, and is usually longer in tenure. Convertible preference shares is one of the many ways companies can raise capital to fund their operations and expansion. They can choose to do so because it enables them to avoid taking on debt, while limiting the potential dilution of selling additional common stock. Goldman Sachs and Jubilant Bhartia declined to comment. Coca-Cola in December announced that Jubilant Bhartia will acquire a minority stake in Hindustan Coca-Cola Holdings Pvt., the parent company of the soft drink maker's largest bottler in India called Hindustan Coca-Cola Beverages Pvt. The total acquisition cost is $1.5 billion, the people said. The pizza-to-pharmaceuticals conglomerate will fund the remaining $900 million required for the acquisition with $600 million of equity and $300 million in debt, the people added. Two subsidiaries of the group — Jubilant BevCo and Jubilant Beverages — recently issued rupee-denominated bonds totaling $658 million-equivalent to fund the deal, Bloomberg News reported. Jubilant Bhartia's purchase of a stake in the beverage giant joins a series of foreign firms looking to divest part of their shareholding in local arms. In December, the Indian unit of South Korea-based LG Electronics Inc. filed for an initial public offering, seeking to tap investors in the South Asian country's booming market. Earlier last year, British American Tobacco Plc raised $2 billion selling shares in its Indian partner. --With assistance from Divya Patil.
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