GCPL gets shareholders' nod to hike payment for Sara Lee stake

NEW DELHI: FMCG player Godrej Consumer Products ( GCPL) today said it has got approval from shareholders to increase the sum for acquiring 51 per cent stake in Godrej Sara Lee to up to Rs 1,200 crore.

Earlier this month GCPL had acquired Sara Lee's 51 per cent stake in Godrej Sara Lee for Rs 1,065 crore.

In a filing to the Bombay Stock Exchange, GCPL said it has got shareholders' consent to "acquire balance 51 per cent stake in Godrej Sara Lee, subject to the provisions of section 372A of the Companies Act, 1956, at a revised consideration amount not exceeding Rs 1,200 crore".

Besides, the shareholders also approved "utilisation of rights issue proceeds for funding the acquisition of Tura, Nigeria (and) Megasari, Indonesia".

In March this year, the company said it has entered into an agreement to acquire Nigerian personal care brand Tura followed by Indonesia's household insecticides maker Megasari for an undisclosed sum.

In April 2008, the company had raised Rs 400 crore through rights issue to use the proceeds for funding of capital expenditure, payment of certain debts and for investing in its subsidiary, Godrej Netherlands BV, and its joint venture, Godrej SCA Hygiene Ltd.

Besides, the company had also said it intends to finance acquisitions and strategic initiatives to meet general corporate purposes.