Reckitt Benckiser eyes 49% in arm

mumbai: reckitt benckiser plc has decided to acquire 16.127 million shares in its indian subsidiary reckitt benckiser india ltd, for a consideration of rs 403 crore at rs 250 per share. the shares constitute 49 per cent of the equity the parent does not own in its indian subsidiary. the offer price is at a premium of 39 per cent to the company''s six-month average share price of rs 180 on bse.the share closed at rs 240 on bse on wednesday. the paid-up capital of the company is at rs 32.9 crore. while 51 per cent equity (constituting 16.47 million shares) is held by the parent company, the rest is with fiis, domestic fis and the public. hsbc securities and capital markets india pvt ltd is advisor to the issue. hsbc''s director and head (corporate finance) k balakrishnan said, "the offer is in line with the global philosophy of delisting subsidiaries." it also demonstrates the commitment of the parent company to reward indian shareholders by offering a price 39 per cent higher than the six-month average price on bse, he added. the offer is slated to open on may 14, 2002 and will close on june 13, 2002. the transaction is anticipated to be completed by july 12, 2002. incorporated in 1951, reckitt benckiser india owns 20 brands in personal hygiene, household and otc pharmaceutical segments. popular brands include dettol, dispirin, mortein, robin blue, cherry blossom, harpic, lizol and colin. the company has six manufacturing units, located in west bengal, karnataka and tamil nadu.