Coca-Cola Amatil (CCA) has signed a heads of agreement to acquire 29.4% stake in Coca-Cola Amatil’s (CCA) Indonesian operations from Coca-Cola.

Under the terms of the accord, Coca-Cola will acquire ordinary equity ownership stake of 29.4% in CCA’s unit CCA Indonesia (CCAI) for $500m.

The investment will be used to boost expansion of CCAI’s production, warehousing and cold drink infrastructure in order to ensure long-term growth in the market.

In addition to enabling the business to broaden its product offering, the investment will develop new consumption occasions and offer a greater range of affordable packages.

CCAI plans to transform its route-to-market model to increase access to the traditional trade and expand its footprint.

CCA Group managing director Alison Watkins said: "With a population of more than 240 million and a fast-growing emerging middle class, Indonesia is a key growth market for CCA."

"In partnership with The Coca-Cola Company, we have developed a plan to support upweighted infrastructure and capability development to enable us to strengthen our market position for the long-term and generate returns above the cost of capital for CCAI."

CCA will hold management and operational control of CCAI, as per the agreement.

Coca-Cola International president Ahmet Bozer said: "This investment will allow us to capture the growth opportunity in one of the largest and most dynamic countries in the world as we enable our system to be even more responsive to consumer and customer needs."

The transaction is subject to CCA shareholder approval.