Unilever offers Rs 600/shr for 22.5% in Hindustan Unilever

Moneycontrol Bureau

Unilever Plc, the parent of Hindustan Unilever Tuesday said it would make an open offer for an additional 22.52 percent stake in the company at Rs 600 per share. The Anglo-Dutch consumer goods giant will pay USD 5.4 billion to raise its stake in the Indian unit.

The offer price represents a premium of 20.5 percent to Monday’s closing price of Rs 497.

Unilever already holds 52.48 percent stake in the company, and if the offer succeeds, its stake in the company will increase to 75 percent.

Market experts expect the HUL stock to climb to Rs 550 near term. The acceptance ratio in the offer will be 47.30 percent, which means that if a HUL shareholder tenders 100 shares in the open offer, 47 of them will be accepted.

HUL's fourth quarter numbers announced Monday were better than analyst estimates, driven by an improvement in volume sales. The market is viewing Unilever’s offer as a vote of confidence in the long term prospects of HUL, and a bullish outlook on the FMCG sector.