NEW DELHI: The board of directors of Akzo Nobel India received a binding offer from its promoter Akzo Nobel N.V. to acquire the company’s powder coatings business and International Research Centre (R&D) for a purchase consideration of Rs 2,073 crore and Rs 70 crore, respectively.
The binding offer also includes sale and transfer of the intellectual property for the decorative paints business by Akzo Nobel Coatings International B.V. to Akzo Nobel India.
The sale and transfer of powder coatings business and the International Research Center will be on a slump sale basis and will be undertaken through separate business transfer agreements with an indirect wholly-owned subsidiary of Akzo Nobel N.V
The acquisition of intellectual property rights of Akzo Nobel Coatings International B.V. by Akzo Nobel India pertaining to the decorative paints business in India, Bangladesh, Bhutan and Nepal will be for a purchase consideration of Rs 1,152 crore.
“These transactions will make Akzo Nobel India a more focused liquid paints and coatings business and enable it to become a fully brand-and-technology-independent company for its core decorative paints business,” the company said in a BSE filing.
The execution of these transactions remains subject to approval of the shareholders of Akzo Nobel India and the supervisory board of Akzo Nobel N.V.
Source Homevior.in
