Henkel, an Industrial and Consumer-based products provider German-based company is now planning to buy 26% stake in Consumer based detergent maker Indian-Based Company called Jyothy Labs.
Both of these companies share a rich history that started in the year 2011 itself when Jyothy labs brought the majority of stake in Henkel India company that was at that time producing consumer goods. At that time, Henkel sold more than 50% of Henkel India stake to the leading whitener and fabric detergent maker-Ujala Fabric whitener.
Headquartered in Navi Mumbai, Henkel Adhesives Technologies India Private Limited (Henkel India), a wholly owned subsidiary of Henkel AG & Co. KGaA, employs approximately 1,000 employees across its sites in India. Today, Henkel India is the name behind many well-known brands in Adhesive Technologies such as Loctite, Teroson, Bonderite, Aquence and Technomelt. While in the FMCG segment, the company’s beauty care brand, Schwarzkopf Professional is the preferred choice of Professional Salon Industry in the country.
According to the latest news from Joint Managing Director of Jyothy Labs, the company has signed an agreement with Henkel AG and they are now given a deadline to finalize the deal. Hopefully, in a months’ time, everything will be decided and the deal will be finalized.
Usually, a non-disclosure agreement is signed by both the parties when the buying and selling companies agree to the terms and conditions laid by both of the parties.
In the agreement that was signed in the year 2011, Henkel AG was given an option to buy 26% stake in Jyothy Labs either by the means of buying shares or by the means of purchasing equity. Do you know, if Henkel AG is able to manage buying more than 26% stake in Jyothy labs, then it will come under the takeover rules and regulations set by SEBI, Securities and exchange board of India.
By this, we mean, Henkel AG will get permission to buy another 20% from the public shares.
Let us now see what statistics have to say:
According to the latest news, the promoters of this Jyothy Labs have already brought 66.92% shares and rest of the shares is owned by public shareholders. As per the reports of SEBI, This 33.08 percentage includes 24% shares of institutes as well.
This is a great deal that will give Jyothy labs a chance to expand its products base and get connected to International brands that Henkel AG already owns.