Our Bureau

New Delhi , Nov. 24

THE Government today allowed Coca-Cola South East Asia Holdings to buy out the Indian shareholders in Hindustan Coca-Cola Holdings Private Ltd.

This has been made possible by deleting an entry level condition that stipulated that 26 per cent of the shareholding should be divested in favour of Indian shareholders after the company completes five years of business operations in India.

Following five years of operations, the company had divested 26 per cent stake in favour of Indian shareholders, despite resistance, in 2003, when the erstwhile NDA Government made it clear that agreements once reached with the Government had to be adhered to.

Coca-Cola South Asia's proposal that has received approval from the Finance Minister, Mr P. Chidambaram, involves foreign direct investment (FDI) worth Rs 549.36 crore.

The Government also gave its nod for the proposal of Gujarat State Petronet Ltd to induct foreign investors such as NRIs, FCVIs, multilateral and bilateral institutions who classify as qualified institutional buyers to participate in its forthcoming IPO involving FDI up to a maximum of Rs 138 crore.

A total of 25 proposals involving FDI worth Rs 773.52 crore were approved by the Finance Minister.

Vodafone's plan to acquire up to 49 per cent stake in Bharti Enterprises involving FDI worth Rs 32.90 crore was also approved.

The Government also gave the go ahead to UK-based Mothercare for setting up a wholly owned subsidiary in India. This involves FDI worth Rs 32.25 crore for sourcing and selling of textiles and garments in India and distributing them through franchisee arrangements.

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