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24 February 2017

Hot Pursuit

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23-Feb-2017 (15:18)
Jyothy Laboratories jumps on reports Henkel AG may buy stake

Meanwhile, the BSE Sensex was up 14.06 points, or 0.05%, to 28,878.77.

On the BSE, so far 29,000 shares were traded in the counter, compared with average daily volumes of 8,463 shares in the past one quarter. The stock hit a high of Rs 382.85 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 351.35 so far during the day. The stock hit a 52-week low of Rs 252.60 on 26 February 2016.

The mid-cap company has equity capital of Rs 18.17 crore. Face value per share is Re 1.

According to media reports, Jyothy Laboratories and Henkel AG & Co have to reach an agreement before the end of this fiscal as part of the 2011 deal when Jyothy Laboratories had acquired a majority stake in Henkel India's consumer business.

Jyothy Laboratories, however, clarified to the bourses during trading hours today, 23 February 2017, that Henkel AG had an option to acquire upto 26% of equity share capital of Jyothy Laboratories through primary and/or secondary transactions, after a period of five years, subject to terms and conditions to be mutually agreed and the company has entered into confidentiality agreement with Henkel AG in this regard. Henkel AG's option to acquire 26% stake in Jyothy Laboratories will expire on 31 March 2017.

In May 2011, Jyothy Laboratories agreed to buy 51% of Henkel India stake from Henkel AG for Rs 118.72 crore. Jyothy Laboratories had offered Henkel AG the option to buy up to 26% stake in the company either through purchase of equity or through issue of shares.

If Henkel AG does buy more than 26% stake in Jyothy Laboratories, it will trigger an open offer to comply with the takeover code of the the Securities and Exchange Board of India. The open offer gives the acquirer a chance to buy up to another 20% from public shareholders. If this deal goes through, Jyothy Laboratories will get an access to more products and brands which Hekel AG owns internationally. The German company has over 100 consumer brands in its portfolio, includes Persil, Schwarzkopf, Dynamo and Persil, media reports added.

As on 31 December 2016, the promoters owned 66.92% stake in Jyothy Laboratories and the remaining 33.08% was held by public shareholders, including 24.17% by institutions.

On a consolidated basis, net profit of Jyothy Laboratories rose 6.59% to Rs 21.51 crore on 3.31% rise in net sales to Rs 383.39 crore in Q3 December 2016 over Q3 December 2015.

Jyothy Laboratories is a fast moving consumer goods company. It is involved in the manufacturing and marketing of products in fabric care, mosquito repellant, surface cleaning and personal care products. The company boasts of power brands like Ujala, Maxo, Exo, Henko, Pril, and Margo.


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