Akzo Nobel India Limited confirmed that the Board of Directors had received a Binding Offer from Akzo Nobel N.V. (the ultimate promoter/holding company), with customary conditions as detailed therein and mentioned in the requisite disclosures submitted to the stock exchanges, to acquire the Company's Powder Coatings business and International Research Centre (R&D). Also, the Binding Offer includes the sale and transfer of the intellectual property for the Decorative Paints business by Akzo Nobel Coatings International B.V. to Akzo Nobel India Limited.
Further to the receipt of the Binding Offer, the Board of Directors of Akzo Nobel India has accepted the sale and transfer of Akzo Nobel India Limited's Powder Coatings business and the International Research Center (R&D) on a slump sale basis, which is a going concern. Each of the aforesaid slump sale transactions will be undertaken through separate Business Transfer Agreements with an indirect wholly owned subsidiary of Akzo Nobel N.V, which is proposed to be incorporated in India, for a purchase consideration of Rs 20,730 million and Rs 700 million, respectively.
The acquisition of intellectual property rights of Akzo Nobel Coatings International B.V. by Akzo Nobel India Limited pertains to the decorative paints business in India, Bangladesh, Bhutan, and Nepal. This transaction will be executed through an intellectual property sale and transfer arrangement with Akzo Nobel Coatings International B.V. for a purchase consideration of Rs 11,520 million.
These transactions will make Akzo Nobel India Limited a more focused liquid paints and coatings business, enabling it to become a fully brand-and-technology-independent company for its core decorative paints business.
The execution of these transactions remains subject to the approval of the shareholders of Akzo Nobel India Limited, and the approval of the supervisory board of Akzo Nobel N.V. Akzo Nobel India Ltd. will seek its shareholders' approval in the coming weeks, with the voting process expected to conclude one month later.
