Eveready Industries Ltd, the Indian dry battery major, is set to acquire 80 per cent stake in Uniross SA, a French company engaged in the manufacture and distribution of rechargeable batteries and allied products.
In a letter to the Bombay Stock Exchange, National Stock Exchange and the Calcutta Stock Exchange, in which its shares are listed, the company said it has signed an agreement with CG Holdings of Paris for an investment of EUR10 million in a joint venture company or special purpose vehicle. This will enable it to acquire a majority stake of about 80 per cent in Uniross,
The funding will be met through equity and debt.
The acquisition will enable Eveready to enhance its share in the rechargeable batteries segment, which is growing at an exponential rate, analysts opined.
Uniross, which has a base in China and subsidiaries in Hong Kong and South Africa, has technology for various types of rechargeable batteries such as nickel cadmium, nickel-metal hydride, lithium ion and zinc cell.
The deal is subject to ''satisfactory legal, accounting, commercial, tax and other due diligence of Uniross and its subsidiaries and group companies, receipt of all necessary regulatory approvals and finalisation and execution of the definitive legal and binding agreements, including shareholders agreements,'' the company added.
Eveready reported net profit of Rs.5.59 crore in the fourth quarter of 2008-09 as against a loss of Rs.6.52 crore for the corresponding period last year.
Its net sales were at Rs.205.7 crore as against Rs.194.2 crore in 2007-09.
Uniross has been a market leader in rechargeable segment since 1968. It designs, manufactures and distributes batteries and battery chargers for digital cameras, digital video, mp3 players, electronic toys and a host of other devices.
It has a presence in more than 70 countries.