No 75% Control of Hindustan Unilever, Investors Rather Hold On to Stocks

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Unilever's public offer of INR600 a share to gain higher control over Unilever Hindustan was met with lukewarm response. The company sought to attain 75% control of Hindustan Unilever but it only reached 67% control after the public offer was closed. The public offer was only able to gain it an increase of 12%.The transaction was closed at USD$3.17 billion.

Inability to reach the goal of 75% control over Hindustan Unilever limits Unilever's plans to squeeze more profits from the Mumbai-based unit. Moreover, this means Unilever has to pay a bigger stake at a later date. While this is unfortunate for the company, Unilever's position and reputation remain top-notch, claimed by analysts.

Hindustan investors chose not to take on Unilever's offer and hold on to their shares because they believe that Unilever is a reliable name. Unilever stocks therefore are worth holding on to, even for a long term.

Currently, Unilever has no plans of offering the same for Hindustan Unilever. Maybe until the end of the year, according to the spokeswoman of Hindustan Unilever.

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Investors, Stock Prices, India

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