| Forbes Gokak has informed the Bombay Stock Exchange that the company's board at its meeting held on September 2 authorised chairman (Shapoor Mistry) and deputy chairman and managing director (K C Mehra) to open a dialogue with Electrolux AB, Sweden for purchase of their holding in Eureka Forbes and to conclude the same, if the price and other terms are mutually acceptable, subject to requisite approvals. |
| It is learnt that this time the company will have to pay a higher valuation to gain complete control of Eureka Forbes. |
| Eureka Forbes sales and other income increased to Rs 492.16 crore in 2003-04 from Rs 442.37 crore in the same period last year. Its net profit increased from Rs 14.54 crore to Rs 19.52 crore in 2003-04. |
| Under the new management, the board of Forbes Gokak in April 2002 approved the acquisition of the Electrolux's stake for Rs 31.77 crore. |
| But talks came to a standstill on the issue of brand rights transfer. Electrolux owns the four brands Eureka, Aquaguard, EuroClean and EuroAir which are used by Eureka Forbes. |
| Globally, Electrolux has exited direct marketing business by selling it to a German company. The Indian business was not a part of the worldwide deal as under the shareholder's agreement, Forbes Gokak, had the first right of refusal if Electrolux planned on selling its stake. |
| Eureka Forbes is known for pioneering the concept of direct selling in India through the introduction of its range of water purifiers and vacuum cleaners. |
| Buying out Electrolux will give it a distribution set up. Eureka Forbes, however, is a marketing unit with its wholly-owned subsidiary Aqua Mall Water Solutions, manufacturing water purifiers. |
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