BIC : BIC : Acquisition of Cello Pen 7th entity
BIC Group - Press Release
Clichy - xxx
BIC Group - Press Release
Clichy - 6 May 2013
Implementation by mutual agreement between BIC and Cello of the February 16,
2012 arbitral award in favor of BIC Group
On May 3, 2013, BIC Group and Cello Group have jointly filed an agreement with
the Bombay High Court to allow BIC Group to acquire the remaining 40% of the
last (7^th) stationery entity of Cello Group. The Court after reviewing the
filling has rendered the agreement enforceable. The agreement provides for
closing before the end of 2013 based on the original term and conditions.
BIC Group has a call option to increase its ownership in Cello Pens from 40%
to 55% by October 2013.
Cello Pens is India's largest manufacturer and distributor of writing
instruments. With its broad portfolio of products and countrywide distribution
network, the Cello brand is one of the most recognized in India.
*On January 21, 2009, BIC signed a definitive agreement with Indian Cello
Group whereby BIC Group was to acquire 40% of the Cello writing instrument
business which was being carried out by 7 entities for 7.9 billion Indian
rupees. As part of the agreement, BIC benefits from a call option in 2013
to increase its stake to 55% at a price based on a formula tied to
*On March 5, 2009 BIC's acquisition of 40% of 6 entities (out of 7) was
completed for a sum of 3.8 billion Indian rupees. This proportionate share
of Cello Pens net income has been accounted through the equity method in
BIC Group accounts since April 1, 2009.
*On January 4, 2010, Cello management proposed to the BIC Group to unwind
and terminate the definitive agreements signed on January 21, 2009 "on
terms and conditions to be mutually agreed between the parties." BIC Group
then confirmed its intention to ensure the implementation of the
*On August 4, 2010, BIC Group announced that it had initiated arbitration
proceedings in order to obtain the full completion of the agreements,
meaning the acquisition of 40% of the 7th and last entity.
*On February 16, 2012 BIC Group received a favourable award from the
Tribunal constituted under the Rules of the Singapore International
Arbitration Center in respect of acquisition of 40% shares in the 7th and
*On May 21, 2012 the BIC Group filed a petition before the Bombay High
Court seeking the enforcement of the arbitral award.
Disclaimer: This document contains forward-looking statements. Although BIC
believes its expectations are based on reasonable assumptions, these
statements are subject to numerous risks and uncertainties. A description of
the risks borne by BIC appears in the section, "Risk factors" in BIC's 2011
Registration Document filed with the French financial markets authority (AMF)
on March 27, 2013.
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For more information, please consult the corporate web site: www.bicworld.com
2013 Agenda (all dates to be confirmed)
2012 AGM May, 15 2013 BIC Headquarters, Clichy
2^nd Quarter and 1^st Half 2013 August 1, 2013 Conference call
3^rd Quarter 2013 results October 23, 2013 Conference call
BIC is a world leader in stationery, lighters, shavers and promotional
products. For more than 60 years, BIC has honored the tradition of providing
high-quality, affordable products to consumers everywhere. Through this
unwavering dedication, BIC has become one of the most recognized brands in the
world. BIC products are sold in more than 160 countries around the world. In
2012, BIC recorded net sales of 1,898.7 million euros. The Company is listed
on "Euronext Paris" and is part of the SBF120 and CAC Mid 60 indexes. BIC is
also part of the following SRI indexes: FTSE4Good Europe, ASPI Eurozone,
Ethibel Excellence Europe, Gaia Index and Stoxx Global ESG Index.
BIC: Acquisition of Cello Pen 7th entity
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