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| Godrej Consumer in takeover talks with Sara Lee |
| Press Trust Of India / Mumbai Jul 27, 2009, 00:54 IST |
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Godrej Consumer Products is in discussions with Sara Lee Corp to acquire 100 per cent stake in Godrej Sara Lee, a joint venture (JV) between Godrej group and the US-based firm, a top company official has said.
Godrej Sara Lee, which manufactures insect repellents, is a 49:51 joint venture company between two wholly-owned subsidiaries of Godrej & Boyce and Sara Lee Corp.
The Board of Godrej Consumer Products (GCPL) yesterday approved the proposed acquisition of this 49 per cent stake from Godrej ConsumerBiz and Godrej Hygiene Care, the two subsidiaries of Godrej & Boyce.
GCPL is also in talks with Sara Lee Corp to acquire its majority 51 per cent stake in the JV. “Our Board has approved purchasing the group’s 49 per cent stake (from the Godrej & Boyce subsidiaries) in the joint venture. This process should be over within two months after getting court approvals,” GCPL Executive Director and President, Hoshedar K Press, told PTI here. “We are in discussions with Sara Lee to acquire their 51 per cent stake as well. This is a part of their global divestment plan,” Press said. The purchase of Sara Lee’s stake in the JV will be at around the same price at which GCPL intends to buy 49 per cent from its group companies.
“The ballpark figure is around Rs 850-900-crore,” Press said. The proposed acquisition of 49 per cent will be through the merger of Godrej ConsumerBiz and Godrej Hygiene Care into GCPL.
After the merger is approved, holdings (assets and liabilities) of the two subsidiaries would be transferred to GCPL, Godrej Group Chairman, Adi Godrej, told shareholders at the company’s AGM. .
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