Jyothy Labs has emerged as the sole bidder for acquiring a majority stake in Henkel India from its German parent. Jyothy has offered Rs.10 per share for the stake, a steep 80% discount to the current market price. The offer price was also about 70% cheaper than what Jyothy paid Tamil Nadu Petro Products for buying its stake in Henkel India recently.
In Henkel India, Henkel KG & A owns 50.97%, which is worth Rs. 255 crore based on yesterday’s closing price of Rs. 42.95. At Rs. 10 a share, this would be valued only at Rs. 59.6 crore. The steep discount is a result of the debt of Rs. 900 crore on Henkel India’s books. If the deal is through, Jyothi will have to acquire another 20% of Henkel India from minority public shareholders through a mandatory open offer.
Henkel sells personal care products under brands such as Henko, Fa, Pril, Mr White, Bref. It has been losing market share to other multinational counterparts, including Hindustan Unilever and Procter & Gamble. Its attractions include brands such as Margo and Chek which would be valuable for a new entrant into the soaps and detergent business.crackcrack
| Company Name | CMP |
|---|---|
| Hindustan Unilever | 2287.90 |
| Godrej Consumer Prod | 1042.50 |
| Dabur India | 487.60 |
| Colgate Palmol. (I) | 2196.75 |
| P&G Hygiene | 9930.50 |
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