The HLL scrip closed at Rs 189.40, which is a marginal drop over its previous close. The Rs108-crore IBL was earlier the Indian subsidiary of Bestfoods which held a 76per cent stake in the company. Unilever acquired Bestfoods globally in a US$20.3 billion deal announced in June this year. The deal was recentlyapproved by its shareholders.While the foreign shareholding in IBL is about 76 per cent, institutionalholding is a marginal 0.09 per cent. Total holding by public is 19.46 percent, companies hold over 4 per cent and the government holding stands at0.21 per cent. An HLL spokesperson, who said the company will have strongbusiness emphasis on IBL, however refused to comment on an earlierspeculation that IBL could either continue as a Unilever subsidiary inIndia, or as a division of HLL. In the past, Pond's and Brooke Bond LiptonIndia existed as Unilever subsidiaries which were later merged with HLL.
According to Birla Sun Life head of research K Ramachandran, an open offerwas one of the ways through which operations of HLL and IBL could be unitedunder Unilever, with the other being a merger.
Analysts say the move will not mean much of financial impact for the Rs10,142-crore HLL, which has a large financial muscle and a substantialpresence in the fast-moving consumer goods sector in the country.
``IBL is a low capital company and thus will have little financial bearingon HLL,'' says Mr Ramachandran.
The IBL products that will add to Levers' portfolio include Captain Cook,Brown & Polson, Knorr, Rex, Skippy and Glucovita. Analysts feel that withIBL under Unilever's fold, the speed to market of new products will increasesubstantially. This could see a growth in the foods category in the future,says an analyst.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.