Tuesday, June 16, 2009

Eveready to acquire French co

Eveready Industries India (EIIL), the BM Khaitan Group flagship company, is buying out France’s rechargeable battery maker Uniross from CG Holding for e10 million (Rs 60 crore approx). This is EIIL’s first overseas acquisition in the offshore battery turf.

The Khaitans have entered into a term sheet agreement with Paris-based CG Holding on Thursday to acquire a controlling bloc of some 80% in Uniross. CG Holding is the parent company of Uniross. As per the agreement, Uniross will issue fresh company shares in favour of EIIL and help the latter buy at least 80% in Uniross. Post-issuance of shares, CG Holdings’ stake in Uniross will get diluted to 20% from the existing 65% holding.

EIIL executive vice-chairman & managing director Deepak Khaitan said: “The investment was both by way of equity and debt up to a maximum value of e10 million in an overseas JV or an SPV, which in turn would buy a controlling stake of about 80% in Uniross.”

The deal will, however, be subject to compliance with legal, accounting, commercial, tax and other due diligence of Uniross and its subsidiary or group companies, receipt of all necessary regulatory approvals as well as finalisation and execution of the definitive legal and binding agreements, including shareholders agreements, EIIL said in a notice sent across to the stock exchanges on Thursday.

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