MUMBAI (Reuters) - India’s Camlin Ltd, maker of stationery materials, said on Monday Japan’s Kokuyo Co would buy up to a 50.3 percent stake in the company and form a joint venture in India to expand and modernise Camlin’s present business.
Under the terms of the agreement, Kokuyo would buy 10 percent in Camlin via a preferential allotment at 85 rupees a share, Camlin said in a statement.
The Japanese firm would further buy 20.3 percent of Camlin from founders on fully diluted basis at 110 rupees a share and later would make an open offer for another 20 percent at the same price, it said.
Shares in Camlin closed at 80.35 on Friday, and hit a 52-week-high of 85.90 rupees on Monday, following reports that said Kokuyo would buy 51 percent in the company.
“...We believe that Kokuyo and Camlin have complementary product portfolios and this joint venture will facilitate faster rollout of portfolio of products by Camlin,” Dilip Dandekar, chairman and managing director of Camlin, said in a statement.
The joint venture would introduce Kokuyo’s products, primarily paper and office stationery, in India and would open export opportunities for Camlin products.
Kokuyo has an annual turnover of about $3.2 billion. Camlin generates annual revenue of $80 million.
After the stake buy, Dilip Dandekar would continue as chairman and managing director. Kokuyo would have the right to nominate four directors to Camlin’s board.
Shares of Camlin closed at 80.75 rupees on Monday, up 0.4 percent in a weak Mumbai market. Kokuyo Stock ended at 576 yen, up 0.52 percent.
(Reporting by Kaustubh Kulkarni; Editing by Rajesh Pandathil and Jui Chakravorty)