JSW Paints Acquires AkzoNobel India Stake

New Delhi, Dec 10 (PTI) JSW Paints has completed the acquisition of a majority stake of 60.7 per cent in AkzoNobel India, subsequently becoming the promoter of the company.

With this deal, the combined entity with AkzoNobel India Ltd (ANIL) makes JSW Paints, a 5-year-old firm, the third-largest player in the decorative paint segment.

"Pursuant to the completion of the aforesaid acquisition, the acquirer (JSW Paints) now holds 27,871,723 equity shares, representing 61.2 per cent of the paid-up equity share capital of the Company," ANIL said in a regulatory filing.

The promoters of the company have been reclassified from the 'promoter and promoter group' category of the company to the 'public' category, it added.

JSW Paints, currently an unlisted entity, is part of the USD 23-billion Sajjan Jindal-led JSW group, which operates in steel, cement, energy, infrastructure, automotive and paints.

It had announced funding its Rs 13,000-crore deal to acquire ANIL through a mix of fund infusion from promoters, debt and PE funds.

JSW Paints, in a statement, said that it had already acquired a 0.44 per cent stake from the public shareholders of ANIL upon successful completion of an open offer, and its stake now stands at 61.2 per cent after today's acquisition.

JSW Group Chairman Sajjan Jindal said, "I am happy to welcome the AkzoNobel India team to the JSW family. We have always believed that India deserves paints and coatings that are trusted and world-class. With Dulux, we are proud to bring global quality to homes and industries across India. Together, there is an incredible opportunity here to build a stronger, brighter and more colourful future for our customers and for India."

On June 27 this year, ANIL had announced entering into a share purchase agreement among Imperial Chemical Industries Ltd and AkzoNobel Coatings International BV (promoters) and JSW Paints, and the subsequent intimation regarding completion of the open offer made in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

"We hereby inform that the acquisition of 60.76 per cent shares of the Company contemplated under the SPA has now been completed," it said.

AkzoNobel CEO Greg Poux-Guillaume said: "Today's closing is an important step in sharpening our strategic focus and positioning AkzoNobel for long-term value creation. We are grateful to our colleagues in India for their many contributions and are pleased to see the business transition to JSW, a strong and committed partner in the region's fast-growing paints and coatings market."

AkzoNobel has retained its powder coatings business and international research centre (R&D).