Lloyd Electric & Engineering has sought shareholders' nod to sell the consumer durables business to Havells as well as to cease the usage of 'Lloyd' brand and change the name of the company.
Earlier this week, Havells announced it will acquire consumer durable business of Lloyd Electric & Engineering.
In a postal ballot notice to shareholders, Lloyd Electric & Engineering said: "The consent of the members is hereby accorded to the company to exit from and to sell/ transfer/ dispose of its consumer durable business...As a going concern on a slump sale basis...To Havells India Limited for a consideration of Rs 1,550 crore."
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It further said: "The consent of the members be and is hereby accorded for ceasing the usage of the brand, logo, trademark and, or, any other intellectual property rights associated with 'LLOYD'...And change of name of the company from Lloyd Electric & Engineering Ltd to LEEL Ltd or LEEL Engineering Ltd or any other name as may be approved by the appropriate authorities."
This acquisition, when completed, will mark Havells' foray into consumer durables industry.
The transaction is subject to confirmatory due diligence and is expected to close in next 8 weeks.
Havells had signed an agreement with Lloyd Electrical and Engineering Ltd and Fedders Lloyd Corporation Ltd for acquiring Lloyd brand and the consumer durable business.
The consumer business of Lloyd is engaged in sourcing, assembling, marketing and distribution of consumer durables including air-conditioners, TVs, washing machines and other household appliances, it added.
Havells will acquire the consumer business infrastructure, people, distribution network including and not limited to absolute, exclusive ownership and right to all intellectual property of brand Lloyd, logo, trademark, goodwill and attendant rights.
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