Pacific Dunlop Set To Take Over Kemwell

The $2 billion Australia-based global surgical major Pacific Dunlop (PDL) is all set to gain control of Kemwell International Ltd (KIL).

The company is at an advanced stage of picking up 74.9 per cent stake in the Bangalore-based firm which is a 100 per cent EOU involved in manufacturing latex surgical gloves.

The Australian transnational is close to mopping up 23.41 per cent of shares through a public offer at a price of Rs 133 per equity share. It will be also be buying out a majority 51 per cent from the promoters of the local company at the same price. "The open offer should be a success as KIL shares are trading in the range of Rs 61 to Rs 83," a senior official of Kemwell told Business Standard. Pacific Dunlop will be routing the investment through its wholly owned subsidiary P D International Proprietary Ltd, which acts as a holding company for PDL's investments in many of its overseas entities. "PDL has vast expertise in surgical technology and the required marketing muscle in the international market. This is the reason why KIL is divesting most of its stake ," the official added.

 

KIL, which operates a manufacturing unit near Bangalore has a production capacity of 188 million surgical gloves per year and its cumulative investment in this unit stands at Rs 18 crore. Ansell International, one of the business divisions of PDL, which focuses on latex and synthetic gloves will be involved in the operations of KIL subsequent to the completion of the acquisition.

Ansell's existing local operations comprise a 50 per cent equity in JK Ansell Ltd, a joint venture with JK Chemicals, a subsidiary of Raymond Ltd.