Lloyd Electric shares tank over 15% after Havells deal

Shares of Lloyd Electric &

Engineering tumbled over 15 per cent today after electrical

goods company Havells said it will acquire the consumer

durables business of the firm for about Rs 1,600 crore.

The stock, even after a positive opening, failed to hold

on to the momentum and plunged 15.15 per cent to Rs 278.15 on

the BSE.

At the NSE, shares of the company tanked 15.12 per cent to

Rs 278.

"...(Havells')board has approved the acquisition of Lloyd

Consumer Durable Business Division (Lloyd Consumer). The

acquisition is proposed to be executed at an enterprise value

of Rs 1,600 crore on a debt free, cash free basis subject to

closing adjustments," the company said in a statement

yesterday.

The acquisition, when completed, will mark Havells' foray

into the fast growing consumer durables industry.

The transaction is subject to confirmatory due diligence

and is expected to close in the next 8 weeks. The company

plans to finance the transaction through a mix of debt and

internal accruals, the statement said.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)