Unilever Launches Bid to Increase Stake in Indian Unit
Jun 20th 2013 11:06PM
Updated Jun 20th 2013 11:08PM
Unilever is making a play to enlarge its presence in India. It has launched an open offer to buy out shareholders in that country's Hindustan Unilever for 600 rupees ($10.02) per share. The offer comes in force on June 21, and will end on July 4.
The consumer goods multinational currently holds nearly 52.5% of the company; this is an attempt to expand that stake up to 75%.
In the press release detailing its bid, the company stressed that an independent committee of Hindustan Unilever's board "has recommended that the Open Offer is fair and reasonable."
The bid is being co-managed by HSBC's Securities unit and local financial services provider Capital Markets (India) Private.
Hindustan Unilever currently trades at 593.3 rupees ($9.91) on India's National Stock Exchange.
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