GCPL to acquire 60 % in Chilean company
Even as Mauritius-based Baytree Investments is set to pick up 4.9 per cent stake in Godrej Consumers Products Ltd. (GCPL), the Mumbai-based company has inked a deal to acquire 60 per cent stake in Cosmetica Nacional, a leading hair colorant and cosmetics company in Chile. Baytree is an indirect wholly-owned subsidiary of Singapore headquartered Temasek, an investment company which has 12 affiliates and offices across Asia Latin America. Godrej will allot 16.7 million shares of Re.1 each to Baytree on a preferential basis. The shares will be allotted at a premium of Rs.409 a share. The share buy will cost Baytree a tidy Rs.685 crore. The share allotment was approved by the board of the company at a meeting held on Saturday. It will now seek the shareholders' nod for the share allotment.
Godrej's venture with Cosmetica Nacional in Chile should be viewed against this backdrop of share allotment to Baytree. A part of the money arising out of share allotment to Baytree could go to buy 60 per cent stake in Cosmetica. The foray into Chile is also in line with the Mumbai-based company's focus on acquiring strong regional assets in the emerging world.
Cosmetica was founded in 1979 by Fernando Garcia, a chemist by training. It reported sales of about $36 million in 2011. And, it has a strong portfolio of brands in the hair care and color cosmetics segments.
“The Chilean business will strengthen our presence in the region and set us on a firm footing to achieve our plans in Latin America,'' a release quoted Adi Godrej, Chairman of Godrej Consumer Products, as saying.
Keywords: Temasek-Godrej tieup