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With a range of products from mosquito-repellents to surface-cleaning products in its kitty, Jyothy Laboratories Ltd has picked up 14.9 per cent stake in Henkel India, in an effort to strengthen its urban and rural portfolio.
In an all-cash Rs 60.73 crore transaction, Jyothy Labs (JLL) bought 1,73,51,686 Henkel shares at Rs 35 each , from Tamil Nadu Petro Products Ltd – making JLL the single largest Indian shareholder.
JLL will also participate in the bidding process to gain Henkel AG's 50.9 stake in Henkel India, an evening announcement to the Bombay Stock Exchange said. Henkel's brands include Henko, Mr White, Pril, Fa, Neem and Margo.
On the block
Mr Ulhas Kamath, JLL's Deputy Managing Director, told Business Line that Henkel's private assets were on the block and HSBC had been given the mandate to sell the German parent – Henkel AG's 51 percent stake. Though there were others in the race, JLL was keen on picking up Henkel's equity, he said, following which it would have to go in for an open-offer, as mandated by the law. But if another company got Henkel AG's stake, then JLL will continue with its strategic investment, he added.
Syngergies
Both the estimated Rs 750 crore JLL and Rs 450-crore Henkel have synergies in business segments, with products in home care, fabric care, dish wash, personal care and house-hold cleaning segments, a JLL note said.
In fact, Mr Kamath said, that the company's appetite for acquisition was not satiated and it was still on the look-out for brands and others with a strategic fit.
Henkel shares were up 5 per cent on the BSE, at Rs 45 on the Wednesday. JLL shares were down marginally, at Rs 228 on the BSE.
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