22
Within The Circle
Divestment
HINDUSTAN UNILEVER SELLS 50% STAKE IN KIMBERLY-CLARK LEVER
TO KIMBERLY-CLARK CORP
On September 29, 2017, India’s largest Fast Moving
Consumer Goods company Hindustan Unilever Limited
(HUL) has entered into a share purchase agreement with
Kimberly-Clark Corporation, U.S.A. (KCC) for divestment
of HUL’s 50% shareholding in Kimberly-Clark Lever Private
Limited (KCL) in favor of KCC.
In 1995, a 50-50 joint venture was formed between HUL
and KCC known as KCL for baby and child care and
feminine care products in India under the brands ‘Huggies’
and ‘Kotex’ respectively.
Vaish Associates acted as the external legal counsels for
Hindustan Unilever Limited.
Vaish Associates advised HUL on all facets pertaining to
the sale of shares which involved drafting, negotiating and
finalizing of definitive agreements.
With a heritage of over 80 years in India, HUL is the market
leader in Indian consumer products with presence in
over 20 consumer categories such as soaps, detergents,
shampoos, skin care, toothpastes, deodorants, cosmetics,
tea, coffee, packaged foods, ice cream, and water purifiers.
HUL is a subsidiary of Unilever PLC.
Kimberly-Clark Corporation is a global company dealing
in essentials through product innovation and building
our personal care, consumer tissue and K-C Professional
brands. It is primarily engaged in the manufacturing and
marketing of a wide range of products mostly made from
natural or synthetic fibers and deals in brands like Huggies,
Scott, Kleenex, Cottonelle and Kotex.
M&A
DLF’S CYBER CITY RENTAL ARM SELLS STAKE TO GIC FOR $1.9BN
associates Mukul Sharma and Navin Kumar, principal
associates, Ishita Khandelwal and Sumi Saikia. Partners
Mrinal Kumar and Avnish Sharma and senior associate
Shrutikirti Kumar worked collaboratively as the real
estate team while the competition law team was led
by partners Shweta Shroff Chopra and Manika Brar,
and includes associates Supritha Prodaturi and Akkriti
Bhatt.
The other parties acting for DLF in the deal were Ernst
& Young, who acted as the transaction advisor along
with Morgan Stanley, and JP Morgan as the financial
advisors.
Realty Major DLF Limited has entered into an
agreement to sell a stake of 33.34% in its rental arm,
DLF Cyber City Developers Limited (DCCDL) to Reco
Diamond Private Limited, an associate of the Singapore
sovereign wealth fund, GIC Group, in a multi-stage
transaction for an aggregate value of US $1.9 billion.
Shardul Amarchand Mangaldas (SAM) advised and
acted on behalf of DLF Ltd, led by its transaction team
headed by Delhi-based executive chairman Shardul
Shroff, and partner Akila Agrawal, along with senior
N ovember 2017 | L egal E ra | www . legaleraonline . com
AZB & Partners acted as the legal advisor to GIC
whereas Wadia Ghandy represented as legal advisor
on real estate matters.
The deal, estimated at a gross value of $1.9bn (`11,900
crores), involves a combination of secondary purchase
of equity shares by the GIC affiliate for around
$1.4bn (`8,900 crores) and two rounds of buyback for
$0.5bn (`3,000 crores), to give effect to the agreed
commercial terms. It is expected to conclude by
November 2017.