FMCG major Hindustan Unilever Ltd (HUL) today said the committee of independent directors that looked into parent firm Unilever’s proposed $5.4 billion open offer, is of the view that the offer price of Rs 600 per share is “fair and reasonable“.
“After a review of the public announcement, detailed public statement, the draft letter of offer, and the aforesaid points, the independent directors committee (IDC) is of the opinion that the offer price of Rs 600 per equity share is fair and reasonable,” Hindustan Unilever Ltd (HUL) said in a filing with BSE.
Last month, the company had constituted a committee of independent directors, including five independent directors of the company——Aditya Narayan, S Ramadorai, R A Mashelkar, O P Bhatt and Sanjiv Misra, to give recommendation on the open offer to the shareholders.
The offer price is at a 29 per cent premium to the volume weighted average market price of the equity shares for a period of 60 trading days, the committee said in its recommendations.
“The offer price is at a premium to the highest ever market price of the equity shares of face value of Rs 1 each, up to the date of public announcement of the open offer,” it added.
The $5.4 billion—open offer by Unilever Plc to buy 22.52 per cent stake in HUL would begin on June 21 and close on July 4.
Consumer goods giant Unilever Plc is looking to hike stake in its Indian arm HUL to 75 per cent through the open offer. Currently, it has a stake of 52.48 per cent.
HUL’s portfolio includes leading brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.
The company, which employs over 16,000 employees, posted net sales of Rs 26,317.15 crore for the 2012—13 fiscal.
Shares of HUL today closed at Rs 595.60 on the BSE, up 0.02 per cent from its previous close.