The Hindu Business Line : European co to buy majority stake in Micro Inks for Rs 991 cr

Micro Inks is a relatively newer entrant to the global printing ink market and its activities have up to now been focused on India and North America.

Mumbai , Oct. 25

A EUROPEAN printing ink manufacturer has agreed to spend Rs 991.5 crore in acquiring a stake of between 50.5 per cent and 59.06 per cent from the Bilakhia family in Micro Inks Ltd.

The Huber Group, the world's fifth largest printing ink manufacturer, will buy a majority stake in Micro Inks at Rs 675 per share. The Bilakhias will continue to hold a minority interest in the company, according to a news release.

However, the Bilakhias will also acquire a 46 per cent stake in a European subsidiary of Huber, Stehlin & Hostag AG, the consideration for which was not disclosed.

"Both parties envisage that this JV could be a precursor to increase the level of the partnership to the Huber holding company in due course subject to confirmation of both parties and regulatory approvals," the release said.

The Bilakhias will also have representation in the Huber's board of directors.

Huber, through its holding company MHM Holding GmbH, will also launch the obligatory tender offer to acquire up to 20 per cent of the shares of Micro Inks Ltd.

While Huber will be able to appoint the majority of the board members in Micro Inks, it is proposed that the positions of the Chairman and the Managing Director will continue to be occupied by the Bilakhia group. Huber will, in addition, appoint an Executive Vice-Chairman and Managing Director. The transaction, which is subject to requisite Indian regulatory and other approvals, is expected to be completed by early next year.

Huber has 29 manufacturing facilities in Europe / North America and over 200 sales and service points worldwide. Micro Inks is a relatively newer entrant to the global printing ink market and its activities have up to now been focused on India and North America. "However, they have limited global distribution and marketing which has prompted them to seek an alliance that would mitigate risks as well as provide access to an existing distribution network," said the release.

Mr Heiner Ringer, Managing Director of Huber, said "this move will secure the future of Huber from a long term point of view and will enable us to enhance our offerings to the customers. We look forward to participate and utilise the excellent facilities and talent available in India."

Mr Yunus Bilakhia, Chairman of Micro Inks, said "Micro Inks has in a single move catapulted from its current position to be a part of one of the global leaders."

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