ICI India to divest its shareholding in Quest India

ICI India Ltd has announced that the Board of Directors of the Company on November 22, 2006 has approved the sale of its entire stake in its wholly owned subsidiary, Quest International India Ltd (Quest India) to Givaudan Group, one of the global leaders in the Flavours and Fragrance business, for a total consideration of not less than Rs 390 cr.

Quest India was established in 2001 as a joint venture between the ICI Group and Hindustan Lever Ltd (HLL) with ICI India holding the controlling interest. As provided in the joint venture agreement, ICI India acquired HLL’s 49% shareholding in May 06. ICI India subsequently acquired the remaining 1% of the share capital held by a group company of ICI PLC making Quest India as its wholly owned subsidiary. The total investment made by ICI India in the shares of Quest India is about Rs 209 cr.

Quest India reported net sales of Rs 116 cr and a Profit after tax of Rs 7.8 cr for the year ended March 31, 2006. It is headquartered in Mumbai and has its manufacturing sites in Daman, with about 100 employees on its rolls.

ICI PLC has, after due evaluation, agreed to accept an offer for sale of Quest international business received by them very recently from the Givaudan Group, who has expressed interest in purchase of Quest India also. Considering the heavy linkages on the International Business and the nature of the customers and the market, the Board has decided to divest the Company’s entire shareholding in its subsidiary Quest India to the said Givaudan Group.

The Board believes that the proposed divestment will be in the best interests of all stakeholders of the Company and also of Quest India, given the established position of the purchaser in the Flavours and Fragrance business across the world.

The transaction is expected to be completed before the end of the current financial year subject to the global deal happening within the same time-frame.

Source : Equity Bulls

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