GCPL to buy 60% in Chile firm, Temasek gets 4.9% for Rs 685 cr | business | Hindustan Times
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GCPL to buy 60% in Chile firm, Temasek gets 4.9% for Rs 685 cr

business Updated: Jan 22, 2012 22:25 IST
HT Correspondent

Godrej Consumer Products Ltd (GCPL) announced its tenth international acquisition in six years as it entered into an agreement to acquire 60% stake in Chile-based Cosmetica Nacional, a maker of hair care and colour cosmetics, for about Rs 200 crore.

This is the third acquisition by Godrej in the Latin American region as part of its three- by-three strategy under which the company has said that it will grow in the three categories - hair care, home care and personal care - and will grow it in three regions, Asia, Africa and Latin America.

The company also announced the entry of Temasek as an investor in GCPL as it will issue 1.67 crore preferential shares amounting to 4.9% of the equity for Rs 685 crore.

Temasek is buying the stake through its wholly-owned subsidiary Baytree.

"We are raising money to fund the acquisition and the remaining amount will be utilised to pay our debts," said Adi Godrej, chairman, Godrej Group, adding that GCPL will acquire the remaining 40% in Cosmetica Nacional over the next 3-5 years.

Baytree has agreed to buy the 1.67 crore shares in GCPL at Rs 410 per share. While GCPL share price closed at Rs 402 at the National Stock Exchange on Friday.