Jyothy Lab completes acquisition of 50.97% stake in Henkel

FMCG player Jyothy Laboratories today said it has completed acquiring 50.97% stake in Henkel India (HIL), taking its total shareholding in the Chennai-based firm to 65.88%.

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

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.

Post the acquisition, Jyothy Lab has total of 7.67 crore shares representing 65.86% stake in Henkel India, the filing added.

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

Following the acquisition of majority stake in HIL, Jyothy Lab has announced an open offer for another 20% 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% open offer is fully subscribed, JLL will own 85.87% in Henkel India.

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

Shares of Jyothy Laboratories were trading at Rs 216.50 in the after noon trade on the BSE, up 3.32% from the previous close.