Mumbai, May 30: Kokuyo Co Ltd of Japan is acquiring a majority stake in Camlin Ltd in a Rs 360-crore deal.

The stake buyout will be completed in three stages. In the first stage, the promoters will sell a 20 per cent stake. Camlin will make a preferential allotment of shares totalling 10 per cent of the company’s equity in the second stage. Finally, Kokuyo will come out with an open offer to minority shareholders of Camlin.

The Japanese company will acquire the 20.3 per cent stake from the promoters and 20 per cent from minority shareholders (open offer) at a price of Rs 110 per share. This marks a 36 per cent premium to the closing price of the Camlin scrip on the stock exchanges today. On the BSE, the Camlin share closed marginally higher at Rs 80.80.

Kokuyo will acquire 69.34 lakh shares of the company — amounting to 10 per cent stake — through a preferential allotment at a price of Rs 85 per share. This money will be utilised by the company for expansion and modernisation of manufacturing facilities and new projects.

While a strategic deal from Camlin has been in the works for some time now, the company said in a statement to the stock exchanges that both the parties had entered into definitive agreements for a joint venture and a share subscription agreement.

According to Camlin, the result will be a joint venture that will also bring in Kokuyo, the Japanese company that has over 100 years of experience in stationery and furniture products, design and construction of office and store interiors, lifestyle retail and distribution. Kokuyo has an annual turnover of over $3.2 billion.

Camlin added that the joint venture would ensure complementarity in product portfolios. It will facilitate the entry of Kokuyo products, particularly paper and office stationery, in the Indian market. It is also expected to open opportunities for joint exploration of increasing exports for Camlin products to other countries.

Camlin added that the closing of the transaction is subject to customary conditions, including receipt of required regulatory approvals, and the completion of the open offer for the purchase of shares of the public shareholders of Camlin Ltd.

Under the terms of the deal, Dilip Dandekar will continue as chairman and managing director and Shriram Dandekar as executive director. Kokuyo will bring in managerial, marketing, manufacturing and product research and development skills. Kokuyo will also have the right to nominate four directors to the board of the company.