Lloyd Electric shares close 16.75 percent lower on Havells deal announcement

A day after electrical goods company Havells said it would acquire consumer durable business of Lloyd Electric & Engineering for about Rs 1,600 crore, the stock  of the latter fell up to 19 percent during intra-day trade on the BSE.

At 1338 hours, the Lloyd stock fell 18.73 per cent  or 61.40 points on the BSE.

The stock opened at Rs 329 level and hit an intra-day low of Rs 262.30 on the BSE.

It closed 16.75 percent or 54.90 points lower at Rs 272.95. 

"...(Havells) board has approved the acquisition of Lloyd Consumer Durable Business Division (Lloyd Consumer). The acquisition is proposed to be executed at an enterprise value of Rs 1,600 crore on a debt free, cash-free basis subject to closing adjustments," the company said.

This acquisition, when completed, will mark Havells foray into consumer durables industry.

"The proposed acquisition is in line with Havells objective of Deeper into Homes, driving domestic expansion and owning a brand and distribution oriented asset. We would leverage and extend the trust associated with brand Havells to consumers, dealers, vendors of Lloyd and create a similar recognition in consumer durables segment," Havells India Chairman and Managing Director Anil Rai Gupta said.

The company has signed an agreement with Lloyd Electrical and Engineering Limited and Fedders Lloyd Corporation Limited for acquiring Lloyd brand and the consumer durable business.

The consumer business of Lloyd is engaged in sourcing, assembling, marketing and distribution of consumer durables including air-conditioners, TVs, washing machines and other household appliances, it added.

Havells will acquire the consumer business infrastructure, people, distribution network including and not limited to absolute, exclusive ownership and right to all intellectual property of brand Lloyd, logo, trademark, goodwill and attendant rights.

(With PTI inputs)