JSW Paints launches open offer to acquire up to 25.24% stake in Akzo Nobel India

Akzo Nobel India Limited on Friday (July 11) said Sajjan Jindal's JSW Paints Limited has issued a draft letter of offer for an open offer to acquire up to 1,14,95,979 fully paid-up equity shares of the company. The offer represents up to 25.24% of the voting share capital of the target company.

The open offer is priced at ₹3,417.77 per share, subject to adjustments under Regulation 8(9) of the SEBI (SAST) Regulations, 2011. The total consideration, assuming full acceptance and no proportionate reduction, amounts to ₹3,929.06 crore in cash.

As per the SEBI norms, the open offer size is subject to proportionate reduction to ensure that the combined post-offer shareholding of the acquirer and PACs does not exceed 75% of the voting share capital.

Also Read: JSW-Akzo Nobel Deal: Five reasons why Paint stocks are buzzing after the announcement

Based on current public shareholding, if the offer is fully subscribed, the maximum open offer size would be reduced to 86,21,985 shares (18.93%), and shares acquired from the sellers would be adjusted to 2,55,33,250 (56.07%).

Last month, JSW Paints said it would acquire a majority controlling stake in Akzo Nobel India for ₹8,986 crore. It will acquire a 74.76% stake from its Dutch promoters/holding entities—namely Imperial Chemical Industries and Akzo Nobel Coatings BV—for a consideration of ₹

8,986 crore, according to a statement from the JSW Group firm.

With this transaction, Akzo Nobel India's Dutch promoters group, which together held a 74.76% shareholding in the company, has exited the Indian decorative paints market, which is witnessing disruption with the entry of new players as Aditya Birla Group.

Also Read: JSW eyes ₹6,000 crore topline in FY25, aims for top three spot in decorative paints

The deal will help the JSW Group expand its play into the paint segment, which it entered in 2019 and is a relatively new player establishing its base in the industry.

Akzo Nobel India has a presence in a wide range of paint and coating segments spanning from decorative paints, automotive and speciality coatings, industrial coatings, marine, protective and yacht coatings to powder coatings.

Shares of Akzo Nobel India Ltd ended at ₹3,625.00, up by ₹25.05, or 0.70%, on the BSE.

Also Read: How JSW’s Akzo acquisition may shake up India’s paints market