UK Paints (India) Private Limited, a key member of the promoter group of Berger Paints India Limited, has informed that it will acquire a 14.48 percent stake in the paint major through an internal restructuring.
The company informed the bourses on Monday about the restructuring of the promoters’ holding.
The acquisition of 16,87,88,138 equity shares from Jenson & Nicholson (Asia) Limited, a wholly-owned subsidiary of the acquirer, is scheduled to take place on or after December 29.
The transaction, involving nil consideration, is being executed under a scheme of amalgamation sanctioned by the National Company Law Tribunal (NCLT) and the Jersey Financial Services Commission, a statement said.
The promoter entity said the restructuring is aimed at rationalising and simplifying the existing group structure by reducing the number of legal entities and jurisdictions.
The move is expected to significantly cut regulatory compliances and administrative costs, while consolidating monitoring and assets at the ultimate holding company level.
It also seeks to enable more efficient utilisation of capital and optimal resource management through the pooling of financial, managerial and technical expertise across the group.
Upon completion of the transfer, UK Paints (India) Private Limited's direct shareholding in Berger Paints will rise from 50.09 per cent to 64.57 per cent. The filing clarified that there will be no change in the overall aggregate shareholding of the promoter and promoter group in the company.
The proposed acquisition is exempt from open offer requirements under SEBI regulations. The volume-weighted average market price of Berger Paints shares for the 60 trading days preceding the notice stood at Rs 546.63 per share.
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