Japan's Kokuyo to buy controlling stake in Camlin

Camlin, maker of stationery materials, said on Monday Japan's Kokuyo Co would buy up to a 50.3% stake in the company and form a joint venture in India to expand and modernise Camlin's present business.

Under the terms of the agreement, Kokuyo would buy 10% in Camlin via a preferential allotment at Rs 85 a share, Camlin said in a statement.
The Japanese firm would further buy 20.3% of Camlin from founders on fully diluted basis at Rs 110 a share and later would make an open offer for another 20% at the same price, it said.
Shares in Camlin closed at Rs 80.35 on Friday, and hit a 52-week-high of Rs 85.90 on Monday, following reports that said Kokuyo would buy 51%in the company.
"...We believe that Kokuyo and Camlin have complementary product portfolios and this joint venture will facilitate faster rollout of portfolio of products by Camlin," Dilip Dandekar, chairman and managing director of Camlin, said in a statement.
The joint venture would introduce Kokuyo's products, primarily paper and office stationery, in India and would open export opportunities for Camlin products.
Kokuyo has an annual turnover of about USD 3.2 billion. Camlin generates annual revenue of USD 80 million.
After the stake buy, Dilip Dandekar would continue as chairman and managing director. Kokuyo would have the right to nominate four directors to Camlin's board.