Ades sells brand name to Coca Cola for $19.9m

JAKARTA (JP): Publicly listed bottled water firm, PT Ades Alfindo Putrasetia has sold its brand names to American-based The Coca Cola Company for US$19.9 million as part of its debt repayment.

The brand names sold to Coca Cola include Ades, the name of its popular bottled water product, and the names of several beverage products such as Desta, Vica and Desca.

According to the purchase agreement summary sent to the Jakarta Stock Exchange, Ades would have to pay Coca Cola for using the five brand names on its product after the deal becomes effective.

The agreement summary did not state when the deal would become effective. Also, Coca Cola has yet to determine the amount of the payment that should be made by Ades.

According to Ades' corporate secretary Lita Siregar, the company had to raise funds quickly to pay debts that fall due soon.

Lita was quoted by website Satunet.com, as saying that Ades owed $35 million to the International Finance Corporation and ING Bank.

She said the company had invited Arthur Anderson Consultant to act as mediator in the negotiation with the two creditors.

On Monday, the Jakarta Stock Exchange (JSX) suspended Ades shares after it recorded a rise of about 30 percent on speculation of its cooperation with Coca Cola.

JSX then called Ades for a hearing to clarify the rumors of its cooperation. It is not clear, whether the deal would see Coca Cola as Ades' strategic partner. (bkm)