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After weeks of speculation and denial from the Camlin management, Kokuyo Co of Japan will pick a 30.3 per cent stake in Camlin Ltd and will make an open offer for another 20 per cent stake.
The Japanese company will buy the Camlin shares at a premium and paying Rs 366 crore for a 50.3 per cent stake post the open offer.
The transaction would be completed in three stages.
To begin with, Kokuyo would pick up a 10 per stake through preferential allotment at Rs 85 a share.
This would be followed by acquiring another 20.3 per cent stake at Rs 110/share from promoters (The Dandekar Family). Kokuyo would finally acquire another 20 per cent through an open offer in line with the SEBI takeover guidelines.
Post the acquisition, the promoter's equity is expected to drop from 38.13 per cent to 18 per cent. Kotak Mahindra Bank advised Kokuyo on the deal. Shares of Camlin rose 0.81 per cent and closed at Rs 80.80 on Monday.
Mr Dilip Dandekar will continue as Chairman and Managing Director and Mr Shriram Dandekar as Executive Director.
Kokuyo will bring in managerial, marketing, manufacturing and product research and development skills. Kokuyo will have the right to nominate four directors on the board of Camlin.
In a press release, Mr Dilip Dandekar said, “It has been our stated intent to scale revenues, and increase our portfolio of products through line extensions. We believe that Kokuyo Co., Ltd and Camlin Ltd have complementary product portfolios and this joint venture will facilitate faster rollout of portfolio of products by Camlin Ltd.”
In an increasingly competitive and rapidly evolving stationery industry, the joint venture will draw from the combined strengths of Camlin and Kokuyo to serve the growing Indian market.
The joint venture will facilitate the entry of Kokuyo's products, primarily paper and office stationery, into the Indian market.
It will also open opportunities for joint exploration of increasing exports for Camlin products to other countries, and sharing the know-how in marketing and technologies.
This alliance will also strengthen the presence of existing Camlin products in India with greater emphasis on scale and efficient manufacturing facilities and increased reach and marketing.
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