Top Story


Home >> Marketing >> Article

Swedish Match to sell its entire Wimco stake to ITC arm

Font Size   16
Swedish Match to sell its entire Wimco stake to ITC arm

Swedish Match today announced selling its entire stake in Wimco to Russell Credit Ltd, a wholly-owned subsidiary of ITC. The company, however, did not divulge the financial details of the deal. Swedish Match held 74% equity stake in Wimco, which is into manufacture of match boxes. ET reported about the ITC-Swedish Match negotiations in its edition dated June 27.

A statement by Swedish Match said it would also make an open offer for acquiring a 20% stake in the company as per a Sebi ruling in '02. The Swedish major has to make the open offer as it lost its appeal against the Sebi order in the Supreme Court. Though the exact level of current public holding in Wimco could not be known, it is very marginal.

A Russell Credit statement said the company would acquire an additional 2% stake from the Swedish Match group after the latter makes its open offer. This would take the total stake of the ITC subsidiary in Wimco to 76%.

Wimco owns brands such as Ship, Homelite and Tekka. The company has been making losses in the past two years - Rs 42.7 crore in 2004-05 and Rs 71.50 crore in '03-04. The company statement said the entire transaction (open offer and the subsequent sell off to Russell Credit) is expected to be closed no later than during the fourth quarter 2005.

Swedish Match holds its stake in Wimco through its Singapore based subsidiaries - Swedish Match Singapore Pte, Haravon Investments Pte Ltd and Seed Trading Pte Ltd.

Commenting on the transaction, ITC's corporate management committee member R Srinivasan said: “Wimco has been making losses for the last few years, with accumulated operating losses crossing Rs 60 crore. This acquisition will catalyse fresh investments in the company with attendant benefits to all stakeholders. ITC has been supporting competitiveness in the match sector through induction of technology and best practices.”


Our typical marketing budget is usually 10 per cent of the topline spend

There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=

The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.

<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...

Under the watchful eye of Walt Disney, Bindass undergoes brand repackaging with a fresh new show ‘Dil Buffering’ simulcast across its linear and social media platforms on September 29 and will launch...

Apart from the mandate for the first project which is the Ashiana Town in Bhiwadi, Tomorrow and InterTwined will deliver brand solutions across film, print, radio, outdoor and activation besides provi...

Despite advertising picking up after a slow Q1, regional FM players still feel that the lingering effect of GST, RERA, demonetisation will still make its impact felt during the upcoming festive quarte...