By Katy Askew | 30 April 2013
Consumer goods giant Unilever has said it is not plotting an attempt take full-control of Bombay-listed subsidiary Unilever Hindustan.
Unilever currently holds a 52.48% share in Unilever Hindustan and the group hopes to raise this to 75% of share capital. This is the maximum level of investment that Unilever can hold under Indian securities and exchange rules while maintaining Unilever Hindustan's public listing.
"We have no plans to take anything further than 75%," a spokesperson for Unilever told just-food this afternoon (30 April).
By increasing its stake in Unilever Hindustan, the company will benefit from an increased share of future profits, the spokesperson continued. "The benefit is to increase our share of the profits that Hindustand Unilever generates. At the moment it is split 50-50 between Unilever and the other shareholders, whereas if we increase our share we would get a bigger part of that."
Unilever has offered INR292.2bn (US$5.44bn) for the 22.52% stake it hopes to take. This represents a premium of around 26% on the Indian business's trading average in the month prior to Unilever's announcement, and a 25% premium on the prior week's average price.
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