Jyothy Labs completes buying 51% stake in Henkel

FMCG player Jyothy Laboratories has completed acquiring 50.97 per cent stake in Henkel India Ltd.

The company has acquired 5.94 crore shares aggregating 50.97 stake in Henkel India on May 31, 2011, Jyothy Laboratories said in a filing to the Bombay Stock Exchange.

This is subsequent to its announcement last month that it would buy out Germany-based Henkel AG & Co’s stake in HIL for Rs 118.7 crore.

The company, which sells fabric wash brand ‘Ujala’, had earlier bought 14.9 per cent stake in HIL from the Indian promoter Tamilnadu Petroproducts for around Rs 60 crore.

Following the acquisition of majority stake in HIL, Jyothy Labs has announced an open offer for another 20 per cent at an estimated cost of around Rs 96 crore.

The open offer to acquire up to 2.32 crore shares at Rs 41.20 per share would start on June 24 and end on July 14. If the 20 per cent open offer is fully subscribed, JLL will own 85.87 per cent in Henkel India.

“The acquisition value of total stake in HIL is being estimated at about Rs 774 crore,” the Jyothy Laboratories Deputy Managing Director, Mr Ullas Kamath, had said.

Meanwhile, the company shares ended the session today at Rs 216.95 on the BSE, up 3.53 per cent from the previous close.