Henkel to re-enter Indian market with purchase of stake in Jyothy Laboratories

Henkel to re-enter Indian market with purchase of stake in Jyothy Laboratories

Henkel is rumored to be re-entering the Indian market by exercising an option to purchase a 26 percent stake in Jyothy Laboratories, according to a report published in The Economic Times.

Henkel, who exited the Indian market in 2011 with the sale of its operations to Jyothy, retained an option to acquire a 26 percent stake in the company at a later date. “Henkel is keen to purchase the stake and wants to exercise it before the deadline ends in March 2016,” a source close to the company is reported to have said. “The negotiations between the two companies have begun with three rounds of meetings between senior executives.”

Jyothy Labs’ shares were valued at Rs306.30 at the close of the market on Thursday, and the Henkel offer is said to be in the range of Rs500 to Rs600 per share. The deal, which is expected to be carried out via an issue of fresh shares or preferential shares, would enable Jyothy Laboratories to benefit from Henkel’s expertise in the personal care market as it prepares to relaunch the Fa deodorant brand onto the market later this year.

 

Leave a reply

Your email address will not be published. Required fields are marked *