HUL forms committee to advise shareholders on open offer

FMCG major Hindustan Unilever Ltd today said its board has constituted a committee of independent directors to provide recommendation to the shareholders on the $5.4 billion voluntary open offer by its parent, Unilever Plc.

"The board of directors has constituted the Independent Directors' Committee to provide reasoned recommendation to the shareholders on the voluntary open offer from the acquirer," Hindustan Unilever Ltd (HUL) said in a filing to the BSE.

The committee would consist of all the five independent directors of the company--Aditya Narayan, S Ramadorai, R A Mashelkar, O P Bhatt and Sanjiv Misra.

"Aditya Narayan shall act as the chairman of the committee," it added.

Earlier, this week, Anglo-Dutch consumer goods giant Unilever Plc had announced that it will spend $5.4 billion to hike stake in its Indian arm Hindustan Unilever to 75% through an open offer, in what would be the FMCG giant's biggest acquisition in over a decade.

The deal when transacted would be the largest Asia Pacific cross border inbound merger and acquisition (M&A) deal so far this year and is the fifth largest India Inbound M&A transaction on record till date.

Unilever will pay Rs 600 a share in an open offer to raise its stake in Hindustan Unilever to 75% from the current 52.48% by acquiring 22.52% through the open offer.

Commenting on open offer Unilever CEO Paul Polman had said: "The long heritage and great brands of Hindustan Unilever, and the significant growth potential of a country with 1.3 billion people makes India a strategic long term priority for the business."

HUL's portfolio includes leading brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall's and Pureit.

The company has over 16,000 employees and posted a turnover of around Rs 21,736 crore for the 2011-2012 fiscal.

Shares of HUL today closed at Rs 572.40 on the BSE, up 0.01% from its previous close.