Camlin to sell majority stake to Japan's Kokuyo
30 May 2011
Camlin Ltd has entered into a joint venture agreement with Kokuyo S&T Co Ltd, a 100-per cent arm of Kokuyo Co Ltd of Japan, for production of new wave satationery in India.
Promoters of Camlin Ltd and Kokuyo Co Ltd today announced the signing of a definitive agreement for setting up the joint venture and the share subscription agreement thereto.
Camlin said it would seek shareholders' approval for issue of 69,34,00 equity shares of Re1 each at a price of Rs85 each to Kokuyo S&T Co Ltd on a preferential basis, in compliance with the SEBI (Issue of Capital and Disclosure Requirements), subject to requisite approvals, consents and permissions.
The promoters of Camlin has agreed to sell 23 per cent current of its equity shareholding in the company to Kokuyo S&T Co Ltd at Rs110 per fully paid share, subject to requisite approvals, consents etc.
The sale of 23 per cent equity will trigger an open offer to be made by Kokuyo S &T Co Ltd to the public shareholders to acquire a minimum 20 per cent equity capital of Camlin Ltd, at a price of Rs110 per share, in compliance with SEBI takeover rules.
Upon completion of the transaction, the board of directors of Camlin will be reconstituted. Dilip Dandekar will continue as chairman and managing director and Shriram Dandekar as executive director. Kokuyo Co Ltd will have the right to nominate 4 directors for appointment on the board of Camlin Ltd.
