Top Story

e4m_logo.png

Home >> Marketing >> Article

Swedish Match to sell its entire Wimco stake to ITC arm

02-July-2005
Font Size   16
Share
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.”

Tags

Siddharth Kumar Tewary, Founder, Chief Creative, One Life Studios and Swastik Productions, on owning the IP on his most ambitious project 'Porus,' the risk of recovering its cost and his distribution strategy

Webscale plans to build the brand around smooth operations for the e-commerce sector and then move on to demand generation

Shriya Ghate, Business Head, Tinkle, spills the beans on the company's vision for its special line of merchandise launched to celebrate its 37th anniversary, its pricing, marketing strategies, and more

Vivek Patni, Director of Wonder Cement, on the current marketing strategies and challenges that brand owners face

Viacom 18 promises to announce new release date soon

Luis Fonsi, Rita Ora, Jain of Makeba fame , Dimitri Vegas, Jason Derulo, Charly Black and Dasu, J Balvin, Parineeti Chopra, Tiger & Jackie Shroff speak exclusively to the radio channel

The Film-Maker, as the host of ‘Calling Karan’, Will Be Just A Phone Call Away From Listeners Seeking Advice On Love & Relationship