Berger Paints to acquire 95.53 per cent in waterproofing co STPL for Rs 167.5 crore
- IBEF
- October 16, 2019
Berger Paints India Ltd, a Kolkata-based company, will acquire 95.53 per cent stake of STP Ltd (STPL), which is mainly into waterproofing and protective coatings. The cash consideration is of Rs 167.5 crore (US$ 23.97 million) of the acquisition and is likely to be completed by November 30, 2019.
STP Ltd reported revenue of Rs 174.2 crore (US$ 24.92 million) in FY19 and is an unlisted company based out of Kolkata. A s per listed on the company's website, it is a member of the Turner Morrison Group, which was previously known as Shalimar Tar Products Ltd. Shalimar was a leader in the Indian waterproofing/ damp-proofing market. STPL has six manufacturing facilities at places including one each at Goa, Ambattur, Hooghly, Kosi Kotwan, Jamshedpur and Panoli.
According to the stock market notification, Berger Paints said STPL is involved with the manufacture and supply of construction chemicals, concrete admixtures, waterproofing chemicals, flooring compounds, bitumen and coal tar-based products, sealants and adhesives, protective and anti-corrosive coatings.
This acquisition will help Berger in its existing businesses. These two companies will be able to combine their strengths and collaborate in the areas of manufacturing, selling, distribution, procurement and technology.
STPL's 1,88,63,180 equity shares or 95.53 per cent of the paid-up equity share capital will be acquired by Berger. The left 4.47 per cent of the paid-up equity share capital of STPL will be owned by the existing shareholders of STPL.
Berger Paints further added, "The transaction is likely to be completed by November 30, 2019. The shares of STPL will be acquired at an enterprise value of Rs 167.5 crore (US$ 23.97 million), subject to the usual closing adjustments on account of networking capital, net debt and adjustments on account of indemnities."
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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