Coca-Cola Amatil Limited (CCL.AX, CCLAY.PK, CCLAF.PK), an Australian manufacturer of carbonated soft drinks and other alcohol-free beverages, or CCA announced the execution of a Heads of Agreement with The Coca-Cola Company to accelerate CCA Indonesia's or CCAI growth strategy. As per the terms of the agreement, The Coca-Cola Company will invest $500 million into CCAI, a subsidiary of CCA, in return for an ordinary equity ownership interest of 29.4%.
The company noted that investment will support the accelerated expansion of CCAI's production, warehousing and cold drink infrastructure to ensure long-term growth and success in this key market.
The transaction closely aligns the interests of CCA and TCCC via joint ownership and establishes a governance structure that facilitates the execution of an agreed plan which seeks to ensure the long-term growth and success of CCAI with agreed system economics.
Under the agreement, CCA will retain management and operational control of CCAI. The proposed new Board of Commissioners (Board) of CCAI will comprise three CCA nominees, including the Chairman, and two nominees of The Coca-Cola Company. Certain reserve matters will be subject to unanimous approval of the Board.
The Agreement is conditional on CCA shareholder approval, The Coca-Cola Company board of directors' approval and the satisfaction of relevant Indonesian regulatory requirements.
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