Emami Limited, the Rs. 600 cr FMCG major announced an open offer to buy stakes up to 20% from shareholders of Zandu Pharmaceutical Works Ltd. The open offer will be priced at Rs 7315 against last 26 weeks average price of Rs 6807.07 and that of last two weeks’ average price of Rs 7136.91.

Last week Emami picked up a substantial stake of 23.6 % at around Rs 130 cr where Emami paid Rs 6900/- (inclusive of non-compete fees of Rs 100) per share of Zandu through off market deals with the Vaidyas, one of the promoter groups of Zandu. This, along with existing holding of Emami group companies, makes its total holding in Zandu at 27.5%.

“Zandu has incredible business prospect and very strong brand equity. Emami is a fast growing FMCG company having strong presence in Health, Personal and Beauty Care segment. Combination of the respective efficiencies of Emami and Zandu to achieve synergetic benefits would be a win-win situation for both the companies”, said Mr Harsha V Agarwal, Director, Emami Limited.

Zandu, the age old ayurvedic herbal and healthcare products company, owns renowned brands like Zandu Balm, Zandu Special Chyawanprash, Kesri Jeevan, Pancharishta, Sudarshan and other ayurvedic and ethical products. In recent years this is the first ever deal of Emami to purchase sizable stake in the FMCG sector. Emami is on the look out for further acquisition opportunities nationally and internationally and walk the path of inorganic growth.

Anand Rathi Financial Services is working as the manager for this open offer while Mosaic Capital Pvt Ltd was the advisor for the transaction with the Vaidyas.

Sourced From: Vaishnavi Corporate Communications Pvt Ltd

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