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Acquisition of Controlling Stake in Fem Care Pharma LtdBy
Dabur India Ltd (DIL)
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Amalgamation
ACQUISITION Merger
LARGE
COMPANY
SMALL COMPANY
A LTD B LTD
C LTD
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Acquiror/Transfree- Dabur
Acquiree/Transferor-Fem Care
Date of acquisition-1st April 20099(as per companies act 1956)
Date recorded by company-30th June
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D eal StructureDabur India Ltd 72.15% Fem Care Ltd Rs. 203.7 cr
Dabur additional 20% stake Fem Care Ltd. Rs.56 cr
The transaction values FCPL at an equity value of Rs 282.4 cr
Dabur Ltd. Fem Care 2009 Rs . 270 cr
A llotment of shares 5:1(5 sh are s D abur for every 1 sh are h eld in Fem Care)
acquire
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The Share capital of Fem as on March 31, 2009
SHARE CAPITALTh e sh are capital of Fem a s on Marc h 31, 2009 i s a s under:
Particulars Amount
(Rs. in Lac s )Authorized Capital7,000,000 Equity S h are s of Rs. 10 eac h 700 .00
700.00Issued, Subscribed and Paid-up 3,529,400
Equity S h are s of Rs. 10 eac h 352 .94Add: amount paid-up on forfeited sh are s 0 .15
353.09
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The share capital of Dabur as on March 31, 2009
Particulars Amount(Rs. in Lac s )
Authorized Capital
1,450,000,000 Equity S h are s of Rs. 1 eac h 14,500 .0014,500.00
Issued, Subscribed and Paid-up
865,076, 249 Equity S h are s of Rs. 1 eac h 8,650 .76
8,650.76
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O bject of the O ffer
To Exerci s e Control Over T h e Target Company & R igh t To Appoint D irector s Or Th roug h Control Over Management Or Policy D eci s ion s.
To Strengt h en T h e Target Company s Pos ition In T h e Indu s try .
Re s ult In Improved S h are h older Value For Bot h Th e Companie s.
Re s ult In En h ancing T h e Scale Of Operation s And Reduction In Over h ead s
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Reason for acquisition of fem care
Lack of adequate adverti s ing budget to matc h t h e s ame .
Perceived to be a s mall family run enterpri s e .
No s tructured & profe ss ional approac h toward s communication s.
Lack of building t h e brand s in co s t effective manner .
Lack of s ocial and corporate image building .
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D oe s th is dealing betweenbot h th e Companie s wa s righ t?
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Fem Care Pvt Ltd
0
20
40
60
80
100
120
140
2oo8 2010
20%
Net Profit
Growth in %
Incrores
2008-2009 ---93 .7 cr
2009-2010---
119 .2 cr
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D abur Pvt Ltd
0
1
2
3
4
5
6
2008-2009 2009-2010
28.6%
Net profit
Growth in %
In billion
2008-2009---3 .91bn
2009-2010---5 .03 bn
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Con s olidated Net Sale s
0
5
10
1520
25
30
35
40
2008-2009 2009-2010
20.6%
Net Sales
Growth in %
In billion
2008-2009---28 .34 bn
2009-2010---
34 .16 bn
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ACCOUN TING TREATMEN T
Equity S h are s
Th e inve s tment s h eld by Tran s feree Company
Record of a ss et s and liabilitie sInter-company balance s D ifference between t h e book value of net
a ss et s Aut h orized sh are capital
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STAFF, W O RKMEN & EMPLOY EES
Employee s of t h e Tran s feror Company sh all bedeemed to h ave employee s of t h e Tran s fereeCompany
Term s and condition s of t h eir employment
Provident Fund, Gratuity Fund, SuperannuationFund
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Conclu s ion
