ICI India adhesives sale to Henkel approved

19 May 2008 14:00  [Source: ICIS news]

MUMBAI (ICIS news)--ICI India has received shareholder approval to sell its adhesives business division to the Indian unit of Germany’s Henkel Group for Indian rupees (Rs) 2.6bn ($61.3m), the company said in a statement on Monday.

The sale of the unit comes after the purchase of ICI UK, which is a parent company of ICI India, by Netherlands-based Akzo Nobel and its decision to sell the firm’s adhesives and electronic material business to Henkel.

"ICI's adhesives business is very successful in India and now we plan to sell it to Henkel," ICI India managing director Guha had earlier told ICIS news.

The adhesives business transferred to Henkel includes a 5,000 tonne/year adhesive plant in Navi Mumbai with about 120 employees in its business.

As part of its transfer to Henkel, ICI would also include its shareholding in its subsidiary Polyinks Limited, he added.

In the last three years, ICI India has divested stakes in its rubber chemicals, explosives and specialty businesses in line with the restructuring of its parent.

($1 = Rs42.40)

Isha Jha contributed to this story
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