A manufacturer and supplier of fast moving consumer goods, with more than 400 brands focused on health and wellbeing, 14 of which generate sales in excess of €1 billion a year. I have a holding in my income portfolio (epic code: ULVR)
Yesterday ULVR announced that its open offer to acquire additional shares in Hindustan Unilever had closed and they had acquired 14.8% of HUL, bringing their total ownership to 67.28%.
At the start of this process, see my post on 30 April, they stated that they were seeking to increase their holding up to 75%. Their INR600 offer was at a premium of almost 30% and valued HUL at 34x historical earnings, so I am surprised that they did not attract a higher percentage. What I find equally surprising is that HUL's shares post the closing of the offer are trading at INR608. One would have expected them to drift back closer to the pre-offer price, unless the market expects ULVR to try again with an increased offer to get closer to the 75% - I do hope not.
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