New Delhi, May 2: US major Gillette's stake would increase to 72 per cent after the restructuring of subsidiary Indian Shaving Products Ltd (ISPL) was completed by September this year, a senior ISPL official said here on Tuesday. ISPL has already obtained shareholder approval for merging two other Gillette group companies-Duracell India and Wilkinson Swords-with itself and the proposal is pending courts' approval."We have already obtained shareholder approval for the merger of Duracell India and Wilkinson Swords with ISPL and the process should be over by September by when we ought to be granted permission by the courts," ISPL director, legal & corporate affairs, Vijai Mathur said. He said that after the process was over, US parent Gillette would become a 72 per cent stake holder in ISPL, up from the present 52 per cent.
"Under the plan, ISPL's 12 million share will go up to 32 million share after the merger of these two companies into it, Mathur said.
This would have reduced Gillette's stake in ISPL to 46 per cent he said but one must take into account the equity stake the US company holds in the two merging companies as well. "Gillette corporation holds 85 per cent and 100 per cent equity stake respectively in Duracell India and Wilkinson Swords," Mathur said, adding this will mean the US company's effective holding in Indian operations would become 72 per cent after the restructuring was over.
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