Hindustan Unilever Ltd - HUL - Open offer price @ 600 Rs per share.
What should you do?
-----------------------
Disclaimer:
I am not an expert in stock market. Please do you own due diligence.
-----------------------
On 30th April, after the results, the parent arm of HUL announced a buy back via open offer @ 600 Rs per share to gain a max of 75% shareholding.
Currently the stake of the parent company (Unilever) is apprx 52%.
Deal size is close to USD 5.4 Billion.
Why would Unilever want to buy this 23% (approx) stake?
- Probable de-listing in the future?
- High return on investment in the India market via
- More dividend
- More royalty
Should you tender your shares in the open offer?
As per me the answer is a definite NO.
- If Unilever wants to de-list, it will/should offer a better price in the future.
- HUL is one of the most expensive stock but if its earnings multiples are 25%-30%, one can expect good share price value.
(What are HUL products?
- Rin, Fair n Lovely, Axe, Kwality, Pears, LifeBuoy, Bru, Kissan, Wheel, Surf, Lux, sunsilk, vim, closeup etc etc etc)
Tell me what you think?
I am keeping my shares close to my chest.
Should you buy more at this level?
Tough call. I would wait and watch.
What should you do?
-----------------------
Disclaimer:
I am not an expert in stock market. Please do you own due diligence.
-----------------------
On 30th April, after the results, the parent arm of HUL announced a buy back via open offer @ 600 Rs per share to gain a max of 75% shareholding.
Currently the stake of the parent company (Unilever) is apprx 52%.
Deal size is close to USD 5.4 Billion.
Why would Unilever want to buy this 23% (approx) stake?
- Probable de-listing in the future?
- High return on investment in the India market via
- More dividend
- More royalty
Should you tender your shares in the open offer?
As per me the answer is a definite NO.
- If Unilever wants to de-list, it will/should offer a better price in the future.
- HUL is one of the most expensive stock but if its earnings multiples are 25%-30%, one can expect good share price value.
(What are HUL products?
- Rin, Fair n Lovely, Axe, Kwality, Pears, LifeBuoy, Bru, Kissan, Wheel, Surf, Lux, sunsilk, vim, closeup etc etc etc)
Tell me what you think?
I am keeping my shares close to my chest.
Should you buy more at this level?
Tough call. I would wait and watch.
In couple of months, we are completing 1 year for this post and during this time, the stock price is the same and moved nowhere and infact quoting little less than 600.
ReplyDeletewhat are your comments now?
my take in this stock was to book some 30% profits at the time of open offer so that we need to regret now :-)
if you want dividend income then keep HUL in your very-long-term portfolio but I guess it would not be a wealth creator like it used to be.