Which Indian bank is the biggest winner?
- by admin
The biggest winner from the Hindustan Unilever acquisition is the Hinds-based unit, which is set to post earnings of $5.5 billion.
The bank’s stock has jumped from $1.40 to $2.50 in less than 24 hours.
The stock was trading at $2 at 9:40am.
The acquisition is set for a cash payout of $1 billion in 2019.
This is about $300 million more than the company had previously expected.
The announcement comes days after a key investor who has been a major backer of Hindustans Unilevers shares in the past told investors that the deal will see the company be valued at $8 billion.
Shares in the company have risen over the past few months on the expectation that it will reap a huge boost in cash flow from the acquisition.
Hinds Unileves, which was founded in 1984, has been under the helm of former Prime Minister Manmohan Singh since 2013.
The company’s stock rose sharply in 2017, as it continued to build up its shareholding in Hindusthan Unilev.
The $2 billion in cash payout is the first in the country to come in under the terms of the deal.
The money will be paid out over 10 years and be spread over three years.
The Indian bank has also been granted the right to acquire a large number of other companies.
The Indian government has also granted the bank a special licence to enter into a licensing agreement with an Australian company.
The biggest winner from the Hindustan Unilever acquisition is the Hinds-based unit, which is set to post earnings of $5.5…