Hindustan Unilever Ltd: Updates on Buy back offer

HSBC Securities & Capital Markets (India) Pvt Ltd ("Manager to the Buyback") on behalf of Hindustan Unilever Ltd ("Target Company") has informed this Public Advertisement regarding completion of Buy-back offer to the equity Shareholders / Beneficial Owners of equity shares of the Target Company, which is in continuation of and should be read in conjunction with the PA dated August 12, 2010 and corrigendum to the PA issued on August 21, 2010, pursuant to t Regulation 19(7) of Securities and Exchange Board of India (Buy-back of Securities ) Regulations, 1998 and subsequent amendments thereto.

THE BUY-BACK

1.1 The Company had announced the Buy-back of its fully paid up equity shares of face value of Rs 1/- each ( "Equity Shares") from the existing registered shareholders of the Equity Shares of the Company ("Buy back") through the open market using the nationwide electronic trading facilities of the Bombay Stock Exchange Ltd ("BSE") and the National Stock Exchange of India Ltd ("NSE"), pursuant to Article 169A of the Articles of Association of the Company and in accordance with Sections 77A, 77AA and 77B of the Companies Act, 1956 ("the Act") and the Securities and Exchange Board of India (Buy Back of Securities) Regulations 1998 ("the Buy back Regulations") at a price not exceeding Rs. 280/- per Equity Share ("Maximum Buyback Price") payable in cash for an aggregate amount not exceeding Rs 630 crores ("Offer Size") i.e. within 25% of the Company's paid up Equity Share Capital and Free Reserves as per the Audited Balance Sheet as on March 31, 2010.

1.2 The Buy-back was effected by the Company from the open market using the nationwide electronic trading facilities of BSE and NSE.

1.3 The Buy-back Offer was open from August 23, 2010 to March 28, 2011 and a notice of closure was issued to BSE and NSE on March 24, 2011.

1.4 All payment obligations relating to the Buy-back offer have been completed.

DETAILS OF THE BUYBACK

2.1 The total number of shares bought back under the Buy-back is 2,28,83,204 Equity Shares of face value of Re 1/- each.

2.2 The shares were bought back for an average price of Rs 273.26.

2.3 The total amount utilised in the Buy-back is Rs 6,25,29,68,086 (Six hundred and twenty five crores twenty nine lakhs sixty eight thousand and eighty six rupees) (excluding brokerage and other charges applicable to the purchase) being approximately 99.25% of the total Buy back Offer of Rs 630 crores.

2.4 The Buy-back was made from open market through stock exchange and does not attract the provisions of Regulation 19(7) (iv) of Securities and Exchange Board of India (Buy Back of Securities) Regulations 1998.

2.5 All Equity Shares bought back have been extinguished in accordance with Regulation 12(2) of the Buy-back Regulations.

CAPITAL STRUCTURE

3.1 The capital structure of the Company, Pre and Post Buy back is as under:

Authorised Share Capital

Rs 225,00.00 Lakhs comprising of 225,00,00,000 Equity Shares of Re 1/- each

Issued, Subscribed and Paid up Capital

As on June 11, 2010 (being the date of Board Meeting)
- Rs 218,16.87 lakhs comprising of 2,18,16,86,781 Equity shares of face value of Re 1/- each.

As on August 11, 2010 (being the date of Public Announcement)
- Rs 218,23.20 lakhs comprising of 2,18,23,19,802 Equity shares of face value of Re 1/- each.

As on March 28, 2011 (being the date of Closure of Buy-back)
- Rs 215,94.37 lakhs comprising of 2,15,94,36,598 Equity shares of face value of Re 1/- each.Read More