Stocks Radar: Hindustan Unilever, Havells, Reliance Communication And More
Havells Rose 2.6% after it acquired Lloyd’s consumer durables division.
Indian shares fluctuated between minor gains and losses as investors take stock of the market ahead of this week’s derivatives expiry. The S&P BSE Sensex slid 0.1 percent to 28,428 while the NSE Nifty 50 declined 0.1 percent as well to 8,812.
Here are the stocks moving the market this morning:
Havells: Acquires Lloyd’s Durables Division
Shares of the electric goods maker fell 2.6 percent to Rs 415 after it acquired the consumer durables division of Lloyd Electric & Engineering in a deal worth Rs 1,600 crore.
At the time of closing the deal, Havells will pay Lloyd Electric Rs 1,200-1,300 crore in cash and will either take Rs 300-400 crore debt on its books or pay lenders, Amit Rai Gupta, chairman and managing director of Havells India, told BloombergQuint over the phone.
Meanwhile the stock of Lloyd dropped as much as 15 percent intraday, the most since November 9 of last year.
After the divestment of Sylvania, we have a fairly healthy cash position on the balance sheet. We will augment that with a certain degree of debt. We are actually yet to finalise the exact quantum, but it could be Rs 500-700 crore of debt and the balance through our internal cash accruals. We will not be requiring any fresh equity and, thereby, no dilution during this process.Amit Rai Gupta, Chairman and Managing Director, Havells India Ltd.
Hindustan Unilever: No Deal
Shares of the fast moving consumer goods company rose 1.9 percent to Rs 856 after Kraft Heinz withdrew its $143 billion bid for Unilever NV, just two days after it came to the public knowledge.
The potentially largest-ever takeover in the food and beverage industry collapsed as Unilever rejected the bid, according to a report by Bloomberg.
Our intention was to proceed on a friendly basis, but it was made clear Unilever did not wish to pursue a transaction. It is best to step away early so both companies can focus on their own independent plans to generate value.Michael Mullen, Spokesman, Heinz Said To Bloomberg
Tata Teleservices (Maharashtra): Gains On Merger Talk
Shares of the Tata group company rose as much as 10.3 percent to Rs 6.7 after Reliance Communications was said to have initiated talks for a merged entity with RCom-Aircel.
According to a report by Economic Times, Ambani approached the newly appointed chairman of Tata Sons, N Chandrasekaran, to discuss the possibilities.
If The Merger Goes Through
- The merged entity would hold over 649 megahertz (Mhz) of spectrum across four bands.
- It would have revenue market share of 15 percent.
- It will be market leader in only one circle, Jammu and Kashmir, with 44 percent of the market share.
- It will rank second in market share in four circles, namely - Tamil Nadu & Chennai (30 percent), Himachal Pradesh (21 percent), Orissa (22 percent) and North East (23 percent).
McNally Bharat Engineering: To Acquire 60% Of Vedica
The company jumped 7.1 percent to Rs 66 after it proposed to acquire a 60 percent stake in Vedica , a business of development of real estates and resorts. The transaction will be made for around Rs 274.7 crore.
"The project is intended to be developed jointly with a property development company on condition that the EPC contract of the project is awarded to the company," it said in a statement to the exchanges.
Besides that, according to a Mint report, the Khaitans of the Williamson Magor group are set to bring in a third major investor in McNally Bharat Engineering Co. Ltd, which will sell shares to acquire a majority stake in a 100-acre project under development at Neemrana, Rajasthan.
Religare Enterprises: To Sell Wealth Management Business
The financial services group holding company rose 1.4 percent to Rs 237 percent after it entered into a "definitive agreement" with Anand Rathi Group to sell its interests in Religare's wealth management business for an undisclosed amount.
The wealth management wing had reported a revenue of Rs 24.8 crore in financial year 2015-16, according to the company's notification to the exchanges.
IRB Infrastructure Developers: Jumps On InvIt Approval
Shares of the infrastructure company rose 4.9 percent to Rs 239 after its InvIT fund received the approval to raise Rs 4,300 crore through an initial public offering, by the Securities and Exchange Board of India’s (SEBI).
The regulator has, however, sought clarifications from India Grid Trust and Reliance Infra InvIT Fund regarding their proposed IPOs.
InvITs, or infrastructure investment trusts, are mutual fund-like institutions that pool in money from individual investors for investing in infrastructure.
NMDC: In Talks For An Acquisition
Shares of the government owned miner fell 0.8 percent to Rs 135 as it is in discussion with Vietnam-based Resources JSC to acquire a considerable stake in its Nui Phao polymetallic mine.
The mine, which has rich reserves of tungsten mineral, is located in Thai Nguyen province in Northern Vietnam. At present, India mostly imports tungsten for its domestic requirements due to high production cost of the metal, according to a report by the Press Trust of India.
NMDC is interested in acquiring a considerable stake in the mine as Ministry of Defence has also expressed interest to buy the metal from NMDC, sources told PTI.
Sensex, Nifty: Movers & Shakers
With inputs from PTI