Multinationals bank on HSBC for big deals
2013 is turning into a dream run for HSBC. After its successful conclusion of the Glaxosmithline PLC voluntary open offer earlier, it surprised the street with yet another voluntary open offer worth USD 5.4 billion from Unilever PLC for its Indian arm Hindustan Unilever (HUL).
April 30, 2013 / 21:48 IST
2013 is turning into a dream run for HSBC. After its successful conclusion of the Glaxosmithline PLC voluntary open offer earlier, it surprised the street with yet another voluntary open offer worth USD 5.4 billion from Unilever PLC for its Indian arm Hindustan Unilever (HUL).
It seems HSBC is turning out to be the banker of choice for European Multi National Companies (MNCs) planning to consolidate their presence in India reports CNBC-TV18’s Nimesh Shah and Arvind SukumarIt acted as the sole financial advisor to Unilever Plc in its bid to hike its stake in its Indian listed subsidiary Hindustan Unilever to 75 percent. The transaction will be the largest stake enhancement by any MNC in India, and will bring around USD 5.4 billion of foreign direct investment (FDI) into the country. It is the largest FDI inflow from the UK over the last 12 months, after the RIL-BP deal.Also read: Offer of Rs 600/shr for HUL fair; won't raise it says Unilever Earlier this month, HSBC acted as the financial advisor to Etihad Airways and was instrumental in the airline's recently-announced deal with Jet Airways. This landmark USD 600 million deal represents the largest FDI in aviation since the rules were relaxed. It is also one of the largest foreign transactions from Abu Dhabi. Earlier, in January 2013, HSBC India successfully advised Glaxosmithkline Plc on increasing its stake in GSK's India-listed subsidiary Glaxosmithkline Consumer Healthcare. The USD 901 million deal involved a 29.3 percent stake in GSK India. HSBC had also advised ABB and Siemens’ parent to hike their stakes in their Indian arms. Moreover, the street will now focus on other MNC's like Nestle, Colgate and P&G, to see if they will follow GSK Cosumer and Unilever and hike their holdings in their Indian arms. 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!
