HUL to buy back shares up to Rs 6.30 bn
HUL to buy back shares up to Rs 6.30 bn >HSBC Securities and Capital Markets India (manager to the buyback offer) on behalf of Hindustan Unilever issued a public announcement (`PA`) to the shareholders of company (HUL) for the buy-back of its fully paid-up equity shares of face value of Re 1each from the existing shareholders of the company (buyback.) through the open market. HUL has made an open offer to buy back the shares at a price not exceeding Rs 230 an equity share, payable in cash, for an aggregate amount not exceeding Rs 6.30 billion. The maximum number of equity shares that can be bought back cannot exceed 551,694,024 equity shares being 25% of 22,067,76,097 equity shares of the company. However the company has not specified the minimum number of shares that the company proposes to buy-back. The company will implement the buy-back by way of open market purchases through the BSE and the NSE using their nationwide electronic trading facilities. The buyback offer opens on Oct. 3, 2007 and closes on Sep. 13, 2008 or when HUL completes the buy-back to the extent of Rs 6.30 billion. Further the company announced that the equity shares will be accepted within 15 days of the relevant payout date of the stock exchange and will be extinguished within 7 days of the acceptance.
Shares of the company gained Rs 3.5, or 1.57%, to settle at Rs 227.05. The total volume of shares traded was 958,630 at the BSE.(Tuesday)
