Dutch consumer goods company Unilever has announced a voluntary open offer to increase its stake in its Indian subsidiary Hindustan Unilever (HUL) from 52.48% to up to 75%.
Under the terms of the deal, Unilever agreed to pay INR600 ($11.23) per share to HUL. The offer has been made to acquire up to 487,004,772 shares, which represent 22.52% stake of HUL.
Unilever chief executive officer Paul Polman said that the acquisition represents a further step in Unilever's strategy to invest in emerging markets and offers a liquidity opportunity for existing shareholders.
"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," Polman added.
The offer is made pursuant to the rules of the Securities and Exchange Board of India and is subject to regulatory approval. The offer period is expected to begin in June 2013.
Hindustan Unilever, based in Mumbai, Maharashtra, is India's largest consumer goods company and is involved in the following segments: food, home care, and personal care. Its food and beverage brands include Annapurna salt and flour; Bru coffee; Brooke Bond tea; Kissan squashes, ketchups, juices and jams; Lipton tea; Knorr soups & meal makers and soupy noodles; Kwality Wall's frozen dessert; Modern Bread bakery items; and Magnum ice cream.
Hindustan Unilever reported revenues of more than INR270bn (€3.8bn) and net profit of over INR38bn (€0.5bn) for the fiscal year ended 31 March 2013.
