Akzo Nobel India Ltd’s share price surged 7.2% to Rs 3,418.6 after JSW Paints announced its acquisition of a majority stake in the company. The acquisition was formalized through a Share Purchase Agreement signed on June 27, valuing the deal at Rs 9,403 crore.
Key Details of the Acquisition:
- Share Purchase Agreement: JSW Paints has entered into an SPA with Akzo Nobel’s promoters. The agreements are with Imperial Chemical Industries Ltd and Akzo Nobel Coatings International B.V.
- Stake: The promoters hold 50.46% and 24.30% of Akzo Nobel’s shares, respectively, which will be sold entirely to JSW Paints.
- Open Offer: JSW Paints will make an open offer to acquire additional shares in accordance with SEBI regulations.
Market Impact:
- Share Price: Akzo Nobel’s stock rose 11% intraday and settled 7.2% higher, slightly above JSW’s open offer price of Rs 3,417.77 per share.
- Market Position: Akzo Nobel controls around 7% of the paint market. JSW Paints is expected to further consolidate its position.
Analyst Views:
- Rating: One analyst recommends a ‘buy’, while two suggest a ‘hold’.
- Price Target: The average 12-month consensus price target implies an upside of 7.3%
