BUSINESS

ITC buys Wimco for Rs 200 cr

By BS Bureau in Kolkata
July 02, 2005 11:48 IST
ITC Ltd consolidated its hold on the matchsticks market by acquiring a controlling stake of 74 per cent in Wimco from the Swedish Match group in a deal that could have cost up to Rs 200 crore (Rs 2 billion) at current prices.

The Wimco shares were acquired by Russell Credit Ltd, a fully-owned subsidiary of ITC Ltd. The company will next make an open offer to the remaining Wimco shareholders with an aim to delist the company from the bourses.

As Swedish Match AB, along with its subsidiaries, has a pending obligation to the Securities & Exchange Board of India to make an open offer to the Wimco shareholders, it today announced that it would soon come out with an offer for 20 per cent of the company' stock. The shares acquired through the offer would subsequently be sold to ITC Ltd.

The Wimco board at its meeting on Friday inducted six ITC Ltd nominees, including R Srinivasan, R Tandon, R K Singhi, R Gopal, R L Auddy and D Dutta as directors.

John Doherty resigned as managing director of Wimco but will continue as a non-executive director. He will be replaced by Gopal.

BS Bureau in Kolkata
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