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HUL-GSK Merger

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HUL-GSK Merger

HUL-GSK Merger

 

GSK
Company FV CMP 52week High 52week Low Mkt Cap Equity Capital Net Worth Total Debt Total Sales PAT BV EPS P/E P/BV Promoter’s Holdings
Rs Rs Rs Rs Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
2020 Q1 10 9229 9387.70 6842.05 38815 42 4343 0 1321 248 1032.52 58.98 39.12 8.94 72.46
2019 10 9229 42 4095 0 5215 983 973.54 233.67 39.50 9.48 72.46
HUL
Company FV CMP 52week High 52week Low Mkt Cap Equity Capital Net Worth Total Debt Total Sales PAT BV EPS P/E P/BV Promoter’s Holdings
Rs Rs Rs Rs Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
2020 H1 1 2138 2187.00 1629.00 462750 216 8058 79 20732 3613 37.31 16.73 63.90 57.31 67.18
2019 1 2138 216 7885 99 39860 6050 36.50 28.01 76.32 58.56 67.19

 

On December 3, 2018, FMCG giant Unilever had announced the acquisition of health food portfolio, including popular brands Horlicks and Boost, from GlaxoSmithKline in India and over 20 other markets for 3.1 billion pounds.

Under the deal, Unilever’s Indian arm, HUL would acquire GSK CH India via an all-equity merger, valuing the total business of the latter at Rs 31,700 crore.

The acquisition is said to be 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 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 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 improved by 5.3%.

According to Sanjiv Mehta, Chairman and Managing Director of HUL, “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.”

The merger of GSK CH India with HUL will be on a basis of an exchange ratio of 4.39 HUL shares for 1 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.

On 6th Novemeber, 2019, HUL notified BSE and NSE saying that the NCLT Mumbai bench had sanctioned the aforesaid scheme and now the order was subject to be sanctioned by the NCLT Chandigarh Bench.

 

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