Smaller related party transaction
25 May 2023
RECKITT BENCKISER GROUP PLC
Smaller related party transaction
25 May 2023 - Slough, UK - Reckitt Benckiser Group plc ("Reckitt" or the "Company") today announces that it has entered into an agreement pursuant to which it will proceed to acquire the remaining interests associated with the Company's majority owned activities in mainland China and Hong Kong ("RB Manon") from its existing minority shareholders. RB Manon undertakes non-exclusive distribution of certain Reckitt brands in mainland China, Hong Kong and other Asian Pacific countries. The transaction will be implemented through the purchase of the non-controlling shareholdings in three subsidiaries of Reckitt held by the minority shareholders. This will occur in multiple stages, which may take place through to 31 December 2038.
The aggregate percentage interest of the minority shareholders in each of the three relevant Reckitt subsidiaries is currently between 20% and 24.95%. Those minority shareholders include Man Wah Holding Co. Limited ("Man Wah") and Merlin Lu (who is also a director of the Reckitt subsidiaries). The consideration payable to the minority shareholders prior to, and upon, final completion of the acquisition of their interests is dependent on the business performance of RB Manon during that period. Based on current expectations of business performance for RB Manon, it is estimated that the total consideration across the multiple stages to 31 December 2038 will be c. £0.3-0.4 billion[1].
For the purposes of Chapter 11 of the Listing Rules, Merlin Lu and Man Wah (which is an associate of Merlin Lu pursuant to the Listing Rules) are related parties of the Company. Pursuant to Listing Rule 11.1.10R, the Transaction constitutes a smaller related party transaction and this announcement is made in accordance with Listing Rule 11.1.10R(2)(c).
Contacts
Richard Joyce & Hazel Chung +44 (0)7807 418516 / +44 (0)7408 850537
Investor Relations
Patty O'Hayer +44 (0)7825 755688
External Relations and Government Affairs
FGS
Faeth Birch +44 (0)7768 943171
About Reckitt:
Reckitt* exists to protect, heal and nurture in the relentless pursuit of a cleaner, healthier world. We believe that access to the highest-quality hygiene, wellness and nourishment is a right, not a privilege.
Reckitt is the company behind some of the world's most recognisable and trusted consumer brands in hygiene, health and nutrition, including Air Wick, Calgon, Cillit Bang, Clearasil, Dettol, Durex, Enfamil, Finish, Gaviscon, Harpic, Lysol, Mortein, Mucinex, Nurofen, Nutramigen, Strepsils, Vanish, Veet, Woolite and more.
Every day, more than 30 million Reckitt products are bought globally. We always put consumers and people first, seek out new opportunities, strive for excellence in all that we do and build shared success with all our partners. We aim to do the right thing, always.
We are a diverse global team of c. 40,000 colleagues. We draw on our collective energy to meet our ambitions of purpose-led brands, a healthier planet and a fairer society. Find out more, or get in touch with us at www.reckitt.com
* Reckitt is the trading name of the Reckitt Benckiser group of companies
103-105 Bath Road, Slough SL1 3UH
Registered in England and Wales, No. 6270876
Reckitt Benckiser Group plc's LEI code is 5493003JFSMOJG48V108
[1] For the purpose of the transaction classification under the Listing Rules, the maximum total consideration has been capped at £1 billion.
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