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May 2, 2001
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Money > Business Headlines > Report May 2, 2001 |
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Gillette to sell Luxor stake to RubbermaidPartha Ghosh Gillette Company is selling its 50 per cent holding in Luxor Writing Instruments Ltd to Newell Rubbermaid of the US. Sources said the acquisition of Gillette's holding by Rubbermaid is part of the latter's global takeover of the stationery products group of Gillette Company. The proposed acquisition of equity shares will be done either directly by Newell Rubbermaid, US or by Newell Mauritius Holding Company. The price will be mutually agreed upon shortly. The shares are currently held by Gillette subsidiaries in India, Gillette Group India Ltd, Gillette Products Ltd and Gillette Diversified Operations Ltd, sources said. The remaining 50 per cent stake in Luxor is held by D K Jain and family. According to the sources, Newell Rubbermaid is also buying out Gillette's equity shareholding in two smaller manufacturers -- L P Pens Pvt Ltd and Hi-Line Pens Ltd. Both these companies are small scale industry units involved in the manufacture of writing instruments. Gillette Group companies hold 24 per cent each in these firms. Sources said Gillette Group India Ltd has agreed to sell 1,20,000 equity shares, constituting 24 per cent holding, in each venture to Newell Rubbermaid. Details of the deal could not be ascertained. The company has sought necessary regulatory approvals for the capital restructuring scheme, including the mandatory Foreign Investment Promotion Board approval. While the department of economic affairs has conveyed its no-objection to the deal, the administrative ministry, the department of the industrial policy and promotion in the Union industry ministry, has supported the proposal subject to the condition that foreign equity in LP Pens Ltd and Hi-Line Pens after the acquisition of equity from Gillette India should not exceed 24 per cent. There is also a 50 per cent export obligation for manufacture of writing instruments reserved for the SSI sector in Luxor Writing Instruments Ltd -- Luxor gets industrial license due to manufacture of items reserved for the sector -- which has to be maintained. Powered by YOU MAY ALSO WANT TO READ:
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