Ades sells brand name to Coca Cola for $19.9m

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)