Jyothy launches open offer for Henkel India buyout

09 May 2011

Jyothy Laboratories today launched its open offer for a 20-per cent additional stake in Henkel India at Rs41.2 a share.

Jyothy is seeking to buy 23.29 million shares through the open offer for a total of Rs959.66 million.

Jyothy Labs had announced last Thursday that it had agreed to buy 51 per cent of German company Henkel AG's Indian arm for Rs570 crore, including debt, for Rs20 a share.

Jyothy, which makes the 'Ujala' brand of fabric wash, plans not only to re-position Henkel brands but also bring in new products from the German firm's global portfolio into India, said it will merge the acquired company with itself in due course of time.

Last month, Jyothy had bought 14.9-per cent stake in Henkel from the Indian promoter Tamil Nadu Petroproducts for about Rs60 crore.

If the 20 per cent open offer is fully subscribed, JLL will own 85.87 per cent in Henkel India.