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Akzo Nobel will be transferring the powder coatings business and international R&D centre on a slump sale basis as a going concern. The powder coatings business will be sold for ₹2,073 crore and the R&D Centre will be sold for ₹70 crore.
The company’s board has also approved 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 for a purchase consideration of ₹1,152 crore. This proposed purchase consideration is the lower of the valuations based on the two independent valuation reports.
“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 an exchange filing.
Execution of these transactions is subject to approval of shareholders of Akzo Nobel India and approval of the supervisory board of Akzo Nobel N.V.
Shareholder approval will be sought in the coming weeks with the voting process expected to conclude a month later, according to Akzo Nobel India.
For financial year 2024, Akzo Nobel’s powder coatings business reported revenue of ₹421.2 crore, which was 10.7% of the company’s overall topline, while the R&D centre accounted for 1.36% of the total topline.
The initial announcement to consider the sale of the above businesses was made in January this year.
Shares of Akzo Nobel India ended 0.5% higher on Monday at ₹3,272. The stock is down 30% from its recent peak of ₹4,674.
First Published: Feb 25, 2025 7:23 AM IST
