Marico acquires further 4.14% stake in Apcos Natural; stock slips ~1%

5 Jul 2022 , 10:15 AM

Marico Limited has acquired a further 4.14% stake in Apcos Naturals Private Limited, an entity that owns the brand “Just Herbs”.

Post this acquisition, the company’s total stake in the company increased to 56.52%.

Earlier on July 14, 2021, the company entered into definitive agreements to make a strategic investment in Apcos Naturals. Pursuant to this, it has completed the acquisition of a 52.38% stake in the company.

As Apcos Naturals is a subsidiary of the Company, the acquisition of an additional stake is a related party transaction.

The current transaction of acquisition of an additional equity stake of 4.14% is as per terms agreed under the definitive agreements signed between the parties.

Marico will be able to participate in the premium, natural, and ayurvedic beauty segments, as well as capitalize on the growing direct-to-consumer sales channel, as a result of its strategic investment in Apcos Naturals.

The acquisition of an additional 4.14% equity stake in Apcos Naturals was completed at the previously agreed pre-money enterprise valuation. Due to confidentiality concerns, the said pre-money enterprise valuation has not been disclosed herein.

At around 10.18 AM, Marico Limited was trading at Rs495 down by Rs4.35 or 0.87% from its previous closing of Rs499.35 on the BSE. The scrip opened at Rs505 and has touched day’s high and low of Rs505 and Rs495, respectively.