ET Markets
Stock Analysis, IPO, Mutual Funds, Bonds & More

Henkel, if at all, will come in as strategic investor: Ullas Kamath, Jyothy Labs

Window has been kept open till March 2017 for Henkel to exercise option for 26% in Jyothi Labs

ET Now|
Updated: Jun 02, 2016, 09.31 AM IST
Henkel to buy Jyothy Laboratories stakes
In a chat with ET Now, Ullas Kamath, Joint MD & CFO, Jyothy Labs, says window has been kept open till March 2017 for Henkel to exercise option for 26% in Jyothi Labs. For the record, Henkel had the option to pick up to 26 per cent stake in Jyothy five years after the latter acquired its Indian subsidiary in May 2011. Edited excerpts

ET Now: Have you received any indication from Henkel about picking up the 26 per cent stake?

Ullas Kamath: No. As of now, the situation is that the window is open for them to put their bet. As and when they exercise their option, definitely we will inform but the fact is the window is open.

ET Now: So what is the last date that they have to put in their offer by?

Ullas Kamath: The deal has to close by March 2017. So bid has to be much before that. The window closes off March 2017 and the fact that we have kept a one-year long window is only to meet, talk and discuss and deide on the price. We have kept a very long window and that is the process they need to follow. At this point, all we can say is that the window is open for them to exercise their option of 26 per cent in Jyothy Labs.

ET Now: So small clarification – what is the earliest date by which they should put in their bid to meet the 2017 dead line?

Ullas Kamath: Absolutely. Any businessman will try to do it as early as possible if they have the intent to invest it is all I can say because the process takes it own time. While it closes on 31st March 2017, anybody has to look into the time line that is required to to put up a bid and negotiate and discuss and get the approvals. All this takes its own time. That's why we have kept one year window and that is all what I can say at this point in time.

ET Now: If this happens, what would be the additional products that would come on board and also would the royalty that you pay for a Pril and all the other brands, be reworked?

Ullas Kamath: Yes absolutely. Every possibility is there. Everybody knows that Henkel has a fantastic portfolio of products and the fact is that if at all they come in, their footprints will fill a bigger role in India. So there is every possibility and every permutation and combination will be tried, If they invest in Jyothy Labs, then naturally there will be negotiations on the royalty also. So these are all permutations and combinations when somebody is coming in as strategic investors. If at all they come, they will not come in as a financial investor, they will be coming in as a strategic investor.

Also Read

Strategic investors find new roads to growth as banks play safe

M&M unit SsangYong on the lookout for a strategic investor

Baring Partners, strategic investor in race to buy 30% in Can Fin Homes

Foreign strategic investors sell stakes worth Rs 30,000 crore in 2019

Edelweiss in talks with strategic investors to off-load stake in wealth biz

Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links

Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service