Henkel AG starts due-diligence to acquire 26% in Jyothy Lab

The German company, Henkel AG has an option to buy 26 per cent stake in Jyothy Laboratories, either through the purchase of equity or through issuance of shares. 

As per an agreement dated May 5 2011, Henkel AG can complete the deal at the subject under certain terms and conditions till March 17. If Henkel AG takes the option to increase its stake by 26 per cent in Jyothy Laboratories, it will initiate an open offer to comply with takeover rules of the security and SEBI. Henkel AG has started its due-diligence for stake in Jyothy Laboratories. The news has already beeen circulated in the market. Any positive step from Henkel AG will lead Jyothy Laboratories, an exposure to more products and brands which Henkel AG owns internationally. The German company holds a portfolio of over 100 consumer brands.

Jyothy Laboratories’ stock opened for trading at Rs 354.55 on the BSE and has rose 5.22 per cent and is currently trading around Rs 373 mark.

Jyothy Laboratories Ltd. is an Indian FMCG company. The company operates in four segments namely, soap & detergent, which comprises of fabric whitener, fabric detergent, dish wash bare, ayurvedic soap, and home care products that consists of incense sticks, scubber, dhoop and mosquito coil, laundry services, which comprise of dry cleaning & laundry and others consisting of tea and coffee.