HUL Board Approves Share Buyback
29-07-2007 :
Mumbai, July 29 2007: At a meeting of the Board of Directors of the Company held this afternoon, the Board has considered and approved, subject to the approvals of the members of the Company, and such other approvals/consents, as maybe necessary, the buyback of the Company’s equity shares at a price not exceeding Rs. 230.00 per share and up to an aggregate amount of Rs. 630 crores, being within 25% of the total paid-up capital and free reserves as per the audited Balance Sheet as at 31st December 2006.
The Company proposes to buy back shares at a price not exceeding Rs. 230.00 per share on the Bombay Stock Exchange Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) where these shares are listed, through open market purchases from time to time.
The maximum price is at a premium of 17% over the closing price of the Company’s share as on 27th July 2007. The average closing price of HUL share in the BSE for the last six months is Rs 196 . The buyback is proposed to effectively utilize the surplus cash and make the balance sheet leaner and more efficient to improve returns.
The Board has decided to take shareholders approval to their proposal for purchasing company’s shares up to 25% of the paid capital in terms of section 77A of the Companies Act, 1956 and accordingly approved the notice and the explanatory statement for taking shareholders approval through postal ballot.
As per the provisions of the Securities and Exchange Board of India (Buyback of Securities) Regulation 1998, the promoters (Unilever) and the directors of the Company shall not participate in the proposed buyback process.
Notes To The Editor
1) Beginnings: The company's journey in India started with Sunlight soap in 1888. With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG) in India. Sunlight was followed soon after by Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.
2) Corporate History: The company's corporate existence came into being with the establishment of Hindustan Vanaspati Manufacturing Company. This was followed by Lever Brothers India Limited in 1933 and United Traders Limited in 1935. These three companies merged to form Hindustan Lever Limited in November 1956. The company was renamed as Hindustan Unilever Limited in June 2007.
3) Listing: The company created history when it was listed in the Bombay, Kolkata, and Madras Stock Exchanges in 1956 and offered 10% of its equity to Indian shareholders. The company became the first foreign subsidiary company in India to offer equity to the Indian public. Today, HUL is listed in the Bombay Stock Exchange and the National Stock Exchange.
4) Shareholding: HUL’s parent Company, Unilever holds 51.42% of its equity, while 17.50% is owned by Resident Individuals, 12.32% by Foreign Institutional Investors, 12.93% by Insurance companies and Financial Institutions and the rest by Mutual Funds, Private Corporate Bodies, and NRI OCB. Today, the company has 410,000 resident shareholders.
About Hindustan Unilever Limited
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians. HUL’s mission is to “add vitality to life” through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life.
