The Hindu Business Line : Forbes plans to buy out Electrolux in Eureka joint venture

FORBES Gokak Ltd has said that it is planning to acquire Electrolux AB's 40 per cent stake in Eureka Forbes Ltd, the joint venture between the two companies.

Forbes said its board on Thursday authorised the company's Deputy Chairman and Managing Director, Mr K.C. Mehra, to open a dialogue with the Sweden-based Electrolux AB.

Eureka Forbes Ltd, a 60:40 joint venture between Forbes Gokak and Electrolux, was set up in 1982 to market health and hygiene products in India. It introduced home cleaning systems in 1982, water purification systems in 1984 and air purification systems in 1994. The company operates from 140 offices covering 90 cities and has expanded its distribution channel to cover retail, industrial, commercial and household segment in India and other countries.

The manufacture of products is undertaken by Eureka Forbes's subsidiary, Aquamall Water Solutions Ltd.

Eureka Forbes Ltd had ended 2003-04 with a profit after tax of Rs 19.53 crore against Rs 14.54 crore in the earlier year. Sales and other income for the year were Rs 492.16 crore (Rs 442.37 crore).

Forbes Gokak had earlier initiated talks with the Swedish company to buy out the latter's stake in the joint venture. However, Electrolux had declined to sell its 40 per cent stake in Eureka Forbes.

Forbes informed the Bombay Stock Exchange that the deal would be concluded if the price and other terms are mutually acceptable and subject to necessary approvals.

More Stories on : Mergers & Acquisitions | Home Appliances

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Maruti procurement goes global

Ashok Leyland to roll out BS III vehicles from Jan

TVS to launch entry-level bike this month-end

IISCO plans to double capacity

Hi-Tech, US partner to make parts for General Motors

Temasek picks Apollo shares

File original wills, HC tells G.P. Birla — Next hearing on September 8

Crisil upgrades Finolex NCD

Forbes plans to buy out Electrolux in Eureka joint venture

Rico Auto in talks to acquire 2 European cos

EPE Process Filters' EOU

Spentex on path to recovery

KCP Sugars plans to invest Rs 30 cr to strengthen operations

Luthra to head M&M arm