Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

Hindustan Unilever Board approves merger of HUL and GlaxoSmithKline Consumer Healthcare Limited

Posted On: 2018-12-03 14:08:43

The Board of Directors of Hindustan Unilever Limited (HUL) today approved a scheme of amalgamation between the Company and GlaxoSmithKline Consumer Healthcare Limited (GSK CH India) subject to obtaining requisite approvals from statutory authorities and shareholders. HUL has reached a definite agreement with GSK CH India in this regard. The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSK CH India. This transaction values the total business at INR 317 bln.

A unique opportunity to acquire the No. 1 Health Food Drinks (HFD) portfolio in the largest HFD market globally

The acquisition is in line with the Hindustan Unilever strategy to build a sustainable and profitable Foods and Refreshment (F&R) business in India by leveraging the mega trend of health and wellness. GSK CH India is the market leader in the HFD category, with iconic brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims. This portfolio has a long history in India with Horlicks having originally been introduced in the 1930s. Horlicks products have been an everyday staple in households across generations.

HUL can unlock significant synergies both from revenue and costs

The average growth rate has been double digit over the last decade, and the category still remains under-penetrated in India. HUL is well positioned to further develop the market given the extent of its reach and capabilities. We will increase penetration with special focus on rural markets and emerging channels and expand our offerings to the fast-growing premium segment. Customer development, we believe, will be a growth multiplier given our direct coverage and technology led capabilities. We will drive significant cost synergies from a combination of supply chain efficiencies and operational improvements, go-to-market and distribution network optimisation, scale in a number of cost areas such as marketing and streamlining of overlapping infrastructure. We expect the business to grow in double-digits in the medium-term and margins to be accretive to HUL post realisation of synergy benefits.

HUL an FCMG powerhouse with proven track record

HUL is the number 1 FMCG business in the country with a demonstrated track record of delivering growth which is competitive, profitable, sustainable and responsible. Business has delivered growth of 10% CAGR in the last 10 years with EBIT improvement of 530bps.

Sanjiv Mehta, Chairman and Managing Director, HUL said, "With this proposed strategic merger with GSK CH India, we will be expanding our portfolio with great brands into a new category catering to the nutritional needs of our consumers. I am confident that this merger will create significant shareholder value through both revenue growth and cost synergies. The turnover of our F&R business will exceed Rs.100 bn and we will become one of the largest F&R businesses in the country. We look forward to welcoming new brands and great talent into the Unilever and HUL family, once the transaction is complete."

About the deal

The GSK CH India business delivered total turnover of around INR 42 billion in the year ended March 2018, primarily through its Horlicks and Boost brands.

The merger of GSK CH India with HUL will be on a basis of an exchange ratio of 4.39 HUL shares for each GSK CH India Share, implying a total equity value of INR 317 bln for 100% of GSK CH India. Following the issue of new HUL shares, Unilever's holding in HUL will be diluted from 67.2% to 61.9%.

The merger includes the totality of operations within GSK CH India, including a consignment selling contract to distribute GSK CH India's Over-the-Counter and Oral Health products in India.

The transaction is expected to be completed in one year subject to regulatory and shareholder approvals.

Shares of HINDUSTAN UNILEVER LTD. was last trading in BSE at Rs.1771.8 as compared to the previous close of Rs. 1765.35. The total number of shares traded during the day was 86702 in over 2682 trades.

The stock hit an intraday high of Rs. 1796.7 and intraday low of 1742.25. The net turnover during the day was Rs. 152768678.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

American Public Life Insurance Company Selects Majesco L&A and Group Core Suite

Flagging off of the first batch of tuna long liner cum gillnet fishing vessels from Cochin Shipyard

Vedanta Ltd denies submitting revised bids for Essar Steel

Huhtamaki PPL Ltd posts net profit of Rs. 17.96 crores in Q4

Linde India Ltd reports PAT of Rs. 15.41 crores in Q4

Tulive Developers Limited board to consider buyback proposal on Feb 22, 2019

GreenPro Certification awarded to Ramco Cements' flagship product - RAMCO SUPERGRADE

Duke Offshore Ltd bags contract from Daewoo - Tata Projects JV

Vyapar Industries Ltd board to consider buyback on Feb 22, 2019

Wipro Positioned as a Leading Player in 'Zinnov Zones for Digital Services in Retail - 2018'

Essel Propack receives Inter Corporate Deposit of Rs. 40 crores

Bajaj Finance announces winners of 'EON'

Gartner Cites Newgen Software as a Niche Player in the 2019 Magic Quadrant for Intelligent BPM Suites

Premier Ltd enters into 10 year lease agreement with Global Icon Projects LLP

ABB wins INR 270 crore order for train technologies from Indian Railways

Nucleus Software's FinnOne Neo Cloud wins the 'Best Cloud Lending Solution' award

HIL Ltd commences commercial production of dry mix plant at Jhajjar, UP

Maharashtra Seamless Ltd pays Rs. 477 crore for acquisition of USTPL

Mac Hotels Ltd Board to consider Interim dividend on March 5, 2019

TCS and Nanoheal to Provide Digital workspace Automation for End-user Devices

IT search at head Divis Laboratories Ltd's premises

TCI Industries Ltd allots 1250 NCRPS

Time Technoplast Ltd receives order worth over Rs. 115 crore

Maruti Suzuki's Compact SUV Vitara Brezza clocks fastest 4 Lakh cumulative sales in under 3 years

BBK Partners with Intellect's Digital Transaction Banking for Digital Transformation of its Transaction Banking Business

Thomas Cook India witnesses a 35% surge in bookings for Japan

Ramco ERP Drives Digital Transformation at PT. Cipta Krida Bahari

63moons filing Rs 10000 cr damage suits against Mr P Chidambaram, Mr K P Krishnan and Mr Ramesh Abhishek

Trident Limited Received 'CSR Leadership Award'

Modulex Construction Technologies Ltd approves corporate guarantee to Give Vinduet Windows and Doors Pvt Ltd

Signet lndustries Ltd secures orders of Rs. 130 crore

Emami Group promoters divest 10% stake for INR 1600 cr in Emami Limited

NLC India Ltd joins hands with NHPC Ltd on power trading

L&T clarifies on action against CTS

Ambuja Cements Limited announces CY2018 results

Cipla wins portion of state ARV tender

Huhtamaki PPL Ltd Board recommends Dividend of Rs. 3 for 2018

Asian Warehousing Limited calls for board meeting on Feb 25, 2019

Cipla and Wellthy Therapeutics announce Partnership

Merck Ltd board to consider dividend on Feb 27, 2019

Ambuja Cements Ltd Board recommends Final Dividend of Rs. 1.50

Wipro launches QuMiC to accelerate migration to Oracle Cloud

Cyient Launches its Connected Equipment Offering for OEMs and Equipment Owners and Operators

V-Mart Retail Limited opens new store in Uttar Pradesh

The Ramco Cements Ltd to contribute Rs. 5 lakhs each for 8 martyrs of Pulwama attack

Satin Creditcare Network Ltd to consider issue of NCDs on Feb 21, 2019

Suditi Industries executes license contract with PSG Merchandising

VBC Ferro Alloys Ltd resumes manufacturing operations at its factory

Tiger Logistics India Ltd strengthens its position in the Auto Logistics Sector

ISG Provider Lens™ Names HCL Technologies a Leader in Development of Next Gen Banking, Financial, and Insurance Applications







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019