Exclusive: Dabur promoters to buy controlling stake in Eveready; 7 pct stake sale by Khaitan family, sources say
A big development is likely on the cards regarding Dabur India. Promoters of this Fast Moving Consumer Goods (FMCG) company are expected to increase their stakes in Eveready and get management control. Zee Business Executive Editor Swati Khandelwal tells more on this big breaking news
A big development is likely on the cards regarding Dabur India. Promoters of this Fast Moving Consumer Goods (FMCG) company are expected to increase their stakes in Eveready and get management control. Zee Business Executive Editor Swati Khandelwal tells more on this big breaking news.
Khandelwal said that the news does not directly concern Dabur but the promoters of Dabur who are planning to acquire Eveready. The promoters are planning to increase their stake in Eveready - a flagship company of the BM Khaitan Group – and later come out with an open offer, she further said.
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She said that this was a big development for the battery manufacturer. Eveready is into the business of consumer electronics and electrical products.
With this, the Burman family which is the promoter of Dabur are making their entry in a new business. The promoters currently hold around 20 per cent in the company, she said. The company has increased its stake over a one-year period.
The original promoters, Khaitans' stake in the company has now come down from 44 per cent over a year ago to just 7.25 per cent now.
Citing sources, the Executive Editor said that the Dabur promoters are planning to buy the entire stake in the company. They will be by buying their stake in Eveready to have the management control in their hands.
This means that they could buy the entire stake of Khaitans currently in the company. The sources have revealed that talks are ongoing on the valuation of the deal. Negotiations are going on, she added.
The reason behind this move is that Dabur promoters find a very promising portfolio of Eveready. The company has over a 50 per cent market share and over 70 per cent share in the flashlight segment.
The reliance on China on lights and electronic products has now come down and this could turn out to be an exciting proposition, she said.
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This is an interesting development between Eveready and Dabur promoters and more action will be seen from here.
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