HUL jumps to 52-week high after Unilever makes open offer to raise stake

HUL jumps to 52-week high after Unilever makes open offer to raise stake

The Hindustan Unilever Ltd (HUL) stock jumped to a 52-week high of Rs 594 in opening trade on Tuesday after its Anglo-Dutch parent firm Unilever Plc made an open offer to increase its stake in the Indian division.

Unilever made an open offer to increase its stake holding in HUL by 22.52 per cent to 75 per cent.

The offered price of Rs 600 per share represented a premium of 20.5 per cent over HUL stock's closing price on Monday. The Anglo-Dutch group has plans to buy up to 48.3 crore shares. The offer worth Rs 29,190 crore valued the stock at 33.3 x FY14 earnings.

Unilever CEO Paul Polman said, "This represents a further step in Unilever's strategy to invest in emerging markets and offers a liquidity opportunity at what we believe to be an attractive premium for existing shareholders.”

Polman added that the great brands of HUL and the significant growth potential in India made the country of 1.3 billion people a strategic long term priority for its business.

Unilever made the open offer just a day after the Indian division reported better than expected volumes growth of 6.3 per cent for the financial fourth quarter ended March 31, 2013.

The list HUL’s popular brands includes Lux soap, Kissan ketchup, Sunsilk shampoo, and skin creams like Fair & Lovely.

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