Jubilant Bhartia Group Gears Up for Major Acquisition, Divests Stakes

The Jubilant Bhartia Group is actively working to raise approximately ₹2,000 crore by selling minority stakes in its publicly traded companies. This strategic move is part of a larger plan to finance the acquisition of a 40% stake in Hindustan Coca-Cola Beverages (HCCB).  

Jubilant Group Seeks to Fund the HCCB Acquisition  

The funds generated from these stake sales will complement the $600 million (approximately ₹5,100 crore) already secured from Goldman Sachs Asset Management to facilitate the HCCB deal. Reports suggest the Bhartia family intends to sell around 6% of Jubilant Ingrevia, 3% of Jubilant Pharmova, and 2% of Jubilant FoodWorks. These figures are subject to market conditions and investor interest. 

Beyond selling stakes in listed entities like Jubilant FoodWorks, the group is also in the process of divesting non-core assets across its food and pharmaceutical businesses to further boost its financial war chest for the acquisition.  

The Hindustan Coca-Cola Beverages Deal  

The acquisition values Coca-Cola's local bottling arm, HCCB, at an enterprise value of ₹31,250 crore, including debt. At this valuation, the 40% stake that Jubilant Bhartia Group is acquiring will cost ₹12,500 crore.  

The Jubilant Bhartia Group first announced its definitive agreement to acquire the 40% equity interest in HCCH (the parent company of HCCB) through Jubilant Beverages in December. The deal received crucial approval from the Competition Commission of India on May 1st, paving the way for its completion. HCCB holds the position of the largest Coca-Cola bottler in India.  

Read more: Brightcom Group Case: ₹35.4 Lakh Paid to SEBI by Former Officials to Settle Financial Irregularities 

Conclusion  

The Jubilant Bhartia Group's multi-pronged approach to fundraising, involving both minority stake sales in its listed companies and the divestment of non-core assets, underscores its commitment to securing a significant foothold in India's beverage sector through the acquisition of HCCB. This strategic move is set to reshape the group's business portfolio. 
 
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