Jyothy Labs board okays Henkel India merger
Detergent maker Jyothy Laboratories on Friday said its board has approved the amalgamation of Henkel India with itself.
June 15, 2012 / 15:06 IST
Moneycontrol Bureau
Detergent maker Jyothy Laboratories on Friday said its board has approved the amalgamation of Henkel India with itself.Jyothy Labs, which makes the Ujalla fabric whitener, had acquired near 51% of Henkel India from its parent Henkel AG in May 2011 and then further increased the stake later. Henkel makes Henko and Mr White detergents among other products. As on date Jyothy holds 9,74,26,487 equity shares or 83.66% stake in Henkel India.The merger will be effective April 1, 2012 and the swap ratio has been fixed at 1:8, subject to adjustment for impending issue of bonus shares in 1:1 ratio by Jyothy Labs. In case of a bonus issue, the share swap ratio would then be 1:4, the company said."We have been integrating operation of both Jyothy Labs and Henkel India to derive synergies in cost, marketing and distribution. Merger is one more step towards reaping the benefits of our efforts," MP Ramachandran, the company's CMD said.Seperately, he told CNBC-TV18 that the merger of the two companies would take 6-8 months. He said integration of the companies is almost complete and the combined entitiy should see at least 50% sales growth, he said.Jyothy Lab shares were trading at Rs 238.85, up 1.2% in NSE in afternoon trade. Henkel India was up 7.8% at Rs 30.35 on BSE. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
