Asian Paints on July 9 said it sold its entire 4.42% stake in Akzo Nobel India Pvt Ltd for Rs 734 crore through bulk deal.
"This is to inform you that the Company has, today, sold its entire holding of 20,10,626 equity shares in Akzo Nobel India Limited, representing 4.42% of its paid-up share capital. The sale was executed at a price of Rs 3,651 per share through the bulk deal mechanism," said Asian Paints in a stock exchange filing.
On July 9, Akzo Nobel India shares on NSE closed 1.6% lower at Rs 3,627 apiece.
Last month, JSW Paints, part of $23 billion JSW Group, said it will acquire majority controlling stake in Akzo Nobel India Ltd (ANIL), the maker of Dulux paints, for Rs 8,986 crore.
It will acquire 74.76 per cent stake from its Dutch promoters/holding entities — namely Imperial Chemical Industries and Akzo Nobel Coatings International BV — for a consideration of Rs 8,986 crore, according to a statement from the JSW Group firm.
“JSW Paints today (Friday) entered into definitive agreements to acquire up to 74.76% stake in Akzo Nobel India from Akzo Nobel NV and its affiliates, for a maximum consideration under the share purchase agreement of up to Rs 8,986 crore,” it said.
With this transaction, ANIL’s Dutch promoters group, which together held 74.76% shareholding in the company, has exited the Indian decorative paints market, which is witnessing disruption with entry of new players as Aditya Birla Group.
The deal is subject to certain closing adjustments and regulatory approvals from the Competition Commission of India (CCI) and the completion of a mandatory open offer to the public shareholders of ANIL.
The deal will help JSW group expand its play into the paint segment, which it entered into in 2019 and is a relatively new player establishing its base in the industry.
In October last year, Akzo Nobel NV announced a strategic review of its portfolio in South Asia and is looking for strategic options, including partnerships, joint ventures, mergers or divestments. This is to deploy capital towards expanding its core coatings business.
Akzo Nobel India has a presence in a wide range of paints and coatings segments spanning from decorative paints; automotive and speciality coatings; industrial coatings; marine, protective and yacht coatings to powder coatings.
Its revenue from operations in FY25 was Rs 4,091.21 crore.
Earlier on February 25, ANIL has said it will transfer its Powder Coatings business and International Research Centre (R&D) to its Dutch parent firm Akzo Nobel NV in a Rs 2,143-crore intergroup deal.
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