Himatsingka Seide Up On Buyout Plan
Textile company, Himatsingka Seide came up 4.28% to Rs 122.95 in early trade on adopting 80% stake in US-based Divatex Home Fashions Inc.
The company’s share price hit an intraday peak of Rs 131.80 and an intraday low of Rs 123 during the day. The scrip touched its 52-week high of Rs 150 on 29 January 2007 and a 52-week low of Rs 86 on 24 July 2006.
Over the last one month to 2nd July 2007, the company’s stock climbed up 6.94% as against the Sensex’s return of 0.64%. The company underperformed the market over the past quarter, gaining 3.10% compared to the Sensex’s rise of 16.16%.
The share price lifted from Rs 108.95 on 22 June 2007 to Rs 117.95 on 2 July 2007. Today, there were 56,692 shares for trading on the BSE counter. In the past one month, the scrip showed had showed an average daily volume of 16,704 shares.
At present, the company's equity is Rs 48.72 crore, with each share of a face value of Rs 5. The existing market price of Rs 122.95 brushes off its FY 2007 earning per share (EPS) of Rs 5.60 by a PE multiple of 21.95.
Today, Himatsingka Seide said before trading hours that it has acquired an 80% stake in US-based Divatex Home Fashions Inc. for $53 million. The enterprise value of the contract is $75 million. It adopted the stake thru its wholly owned division, Himatsingka America Inc.
Divatex is among the top three distributors of bed linen products in the United States, which is headquartered in New York and runs a big warehousing and distribution plant outside South Carolina. In the year ended December 31, 2006, Divatex reported revenue of $151 million with earnings before interest, tax, depreciation and amortization (EBITDA) of $14 million
In March 2007, Himatsingka Seide took a 59.74% stake in Giuseppe Bellora SpA, Italy for euro 20 million in Giuseppe Bellora SpA, Italy. It had adopted the stake from a private equity company and the promoter family. Additionally, it infused an incremental euro 3.75 million as fresh equity to raise its share in the Italian company to 70% Giuseppe Bellora is a pan-European luxury brand in the bed linen segment
Himatsingka Seide is a 100% export oriented unit (EOU), constructing and marketing natural silk fabric. Their silk yarns and fabrics are offered across England, Germany, Italy, South America, USA, Australia and France. It is one of the largest integrated mills in the world.