Butterfly Gandhimathi Appliances shares hit a 52-week high on Wednesday after Crompton Greaves Consumer Electricals said it would acquire a controlling stake in the company.On BSE, the Butterfly Gandhimathi stock rose as much as two percent to Rs 1,419, before settling at Rs 1,395 apiece for the day.

Share Market Live

NSE

Crompton Greaves Consumer said it will acquire up to 55 percent in Butterfly Gandhimathi Appliances at Rs 1,403 per share, aggregating up to Rs 1,379.7 crore. The company said it had signed definitive agreements with certain members of the Butterfly promoter group.

Crompton Greaves Consumer said the transaction will accelerate its long-term strategic goal of becoming a leading player in small domestic appliances.

It will also acquire certain Butterfly trademarks from promoter entities for Rs 30.38 crore.

CNBC-TV18 had earlier reported that Crompton Greaves Consumer would acquire more than 50 percent in Butterfly Gandhimathi.

In an exclusive interaction with CNBC-TV18, Butterfly Gandhimathi Managing Director VM Seshadri said the company is happy with Crompton Consumer’s offer. Butterfly has signed a non-compete agreement with Crompton Consumer, he said.

Crompton Greaves Consumer will also launch a mandatory open offer for 26 percent in Butterfly at Rs 1,433.9.

Butterfly's kitchen and small domestic appliances portfolio includes mixer grinders, pressure cookers, stainless steel vacuum flasks, LPG stoves and non-stick cookware.

Catch latest stock market updates with CNBCTV18.com's blog

(Edited by : Akanksha Upadhyay)

First Published:Feb 23, 2022 11:48 AM IST