Japan's Kokuyo Co will acquire 50.3% stake in stationery products maker Camlin for an estimated Rs 360 crore.
The two companies have signed a deal under which the Japanese firm will acquire a majority stake in Camlin in three tranches, after which the Indian firm will be converted into a joint venture.
"The transaction will bring together two highly recognised stationery companies with complementary product portfolios, and will facilitate sustained long-term growth for both companies," Camlin said in a statement.
Under the agreement, Kokuyo will acquire 10% stake in Camlin through preferential allotment at a price of Rs 85 per share. Besides, the Japanese company will acquire another 20.3% stake from Camlin promoters at Rs 110 per share.
This will be followed up with an open offer for another 20% stake in accordance with Sebi regulations, at a price of Rs 110 per share, the statement said.
As per the information available on the Bombay Stock Exchange, Camlin promoters hold 38.13% stake in the company.
While the company did not disclose the total size of the deal, according to the industry sources, the entire transaction will be for around Rs 360 crore.
Commenting on the deal, Camlin Chairman and Managing Director Dilip Dandekar said: "We believe that Kokuyo and Camlin have complementary product portfolios and this joint venture will facilitate faster rollout of portfolio of products by Camlin."
He said the company has been looking to scale up revenues and increase portfolio of products through line extensions. As part of the deal, Dandekar will continue as the CMD of Camlin, and Shriram Dandekar as the executive director.
"Kokuyo Co will bring in managerial, marketing, manufacturing and, product research and development skills, and will have the right to nominate 4 directors for appointment on the board of Camlin," it said.
