Share price of Kansai Nerolac Paints declined 2.6 percent intraday Wednesday. The company entered into share purchase agreement (SPA) to acquire 55% in RAK Paints, Bangladesh.
The company has entered into SPA to acquire 55% of the paid-up equity share capital of RAK Paints, Bangladesh for a total consideration of Bangladeshi Taka (BDT) 57.26 crore (approximately Rs 45.81 crore), which is subject to adjustments for borrowings, working capital and fixed assets as at the closing date.
The acquisition would be in accordance with the Regulations issued by the Reserve Bank of India for Overseas Direct Investment (ODI).
The said acquisition is likely to be completed by July 31, 2018, subject to fulfilment of conditions precedent in the share purchase agreement
RAK Paints is one of the established paint companies in Bangladesh having a diverse product range encompassing decorative paints and industrial paints.
At 11:38 hrs Kansai Nerolac Paints was quoting at Rs 476.30, down Rs 9.45, or 1.95 percent on the BSE.
Posted by Rakesh Patil
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