Unilever Increases Stake by 67% in Indian unit
Unilever, an Anglo-Dutch consumer goods company announced acquisition of additional stake in its Indian unit, Hindustan Unilever. Unilever acquired a little over two thirds of the company following the tender offer which had fell short of its original plan to raise as much as 75% stake in the company.
The shareholders at Hindustan Unilever tendered 319.7 million shares to the offer. The Indian unit is the biggest consumer goods maker in the country. The tendered shares increased Unilever's offer to 67.28% from its previous 52.48% holding in the company. This was according to a statement from the consumer goods firm.
Unilever manufactures products including soap, margarine, detergent and ice cream. It paid US$9.90 per share piece for the tender offer of shareholders. This valued the transaction to Eur2.45 billion.
Earlier this year, Unilever announced its planned stake increase of 75% and pay US$5.4 billion for Hindustan Unilever. The stake increase was part of a strategy to raise its presence in fast growing emerging markets.