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Govt believed to have cleared Coke`s differential rights plan
New Delhi, Mar 25: Government is believed to have cleared Coca-Cola`s proposal of differential voting rights for Indian shareholders after the company finished divestment of equity in favour of resident Indians last month.
New Delhi, Mar 25: Government is believed to have cleared Coca-Cola's proposal of differential voting rights for Indian shareholders after the company finished divestment of equity in favour of resident Indians last month.
The soft drinks giant announced completion of divestment of 49 per cent stake in Indian operations in favour of resident Indians on February 27 this year, a day ahead of the deadline set by the government, even as its application was then pending with the board.
It had asked the government to allow differential voting rights, taking the plea that a ban on such rights was not a part of entry level conditions which have been enforced by the government by making it mandatory for coke to divest up to 49 per cent stake in favour of resident Indians.
"Yes, government has cleared our proposal, allowing Indian shareholders differential voting rights," Vice-President (External) of Coca-Cola India Sunil Gupta said.
The voting rights issue follows coke's repeated pleas with the government to either waive the divestment condition or give it a five-year moratorium. Both were rejected, with the government setting a February 28 deadline for completing the divestment.
As per a company statement earlier, Hindustan Coca-Cola holdings has divested 49 per cent stake in its bottling subsidiary Hindustan Coca-Cola Beverages Ltd in favour of Indian shareholders on private placement basis.
Bureau Report
It had asked the government to allow differential voting rights, taking the plea that a ban on such rights was not a part of entry level conditions which have been enforced by the government by making it mandatory for coke to divest up to 49 per cent stake in favour of resident Indians.
"Yes, government has cleared our proposal, allowing Indian shareholders differential voting rights," Vice-President (External) of Coca-Cola India Sunil Gupta said.
The voting rights issue follows coke's repeated pleas with the government to either waive the divestment condition or give it a five-year moratorium. Both were rejected, with the government setting a February 28 deadline for completing the divestment.
As per a company statement earlier, Hindustan Coca-Cola holdings has divested 49 per cent stake in its bottling subsidiary Hindustan Coca-Cola Beverages Ltd in favour of Indian shareholders on private placement basis.
Bureau Report