te Crompton Greaves Consumers acquires 55 per cent stake in Butterfly Gandhimati | Zee Business

Crompton Greaves Consumers acquires 55 per cent stake in Butterfly Gandhimati

Crompton Greaves Consumer Electricals has bought 55 per cent stake in Butterfly Gandhimati at a rate of Rs 1403 per share completing the long-awaited acquisition deal. Zee Business’ Devanshi Ashar explains the impact of this Rs 1380 crore deal for CG Consumer Electricals.

Crompton Greaves Consumers acquires 55 per cent stake in Butterfly Gandhimati
CG Consumer’s earnings will reflect the benefits in FY24.

Crompton Greaves Consumer Electricals has bought 55 per cent stake in Butterfly Gandhimati at a rate of Rs 1403 per share completing the long-awaited acquisition deal. Zee Business’ Devanshi Ashar explains the impact of this Rs 1380 crore deal for CG Consumer Electricals.

Asher said that CG Consumers emerged as the winner among many contenders for the stake buy. It was completed after lingering for a long time. 

Now that they have purchased a 55 per cent stake in Butterfly, the mandatory open offer is likely to follow suit and will be paying a premium for the deal. The open offer will be brought t Rs 1434 per share. In all the company will be shelling out Rs 2076 cr for buying 81 per cent share in Butterfly.   

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The valuations are now at good levels, and the synergy is going to be beneficial for CG Consumers. After the deal, CG Consumers have bought lands and trademarks. The company aims to become a leader in the small appliance business.

The synergy benefits seem great in the Southern parts of the country, with an increase in distribution. The 5 per cent of overall Butterfly Gandhimati sales can prove to be beneficial for CG Consumers synergically.

CG Consumer’s earnings will reflect the benefits in FY24. The company will have two brands under its umbrella.

The deal is going to be positive for CG Deals.

For more details, Watch Full Video Here:-

Written By: ZeeBiz WebTeam
Edited By: Shivendra Kumar
Updated: Wed, Feb 23, 2022
06:11 pm
ZeeBiz WebDesk
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