Astral Limited has entered into definitive agreements to acquire 51% stake in Operating paint business of Gem Paints from Gem Paints Limited.
August 31, 2023
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Astral Limited (BSE:532830) has entered into definitive agreements to acquire 51% stake in Operating paint business of Gem Paints from Gem Paints Limited for INR 1.9 billion on April 1, 2022. INR 1940 million for 51% equity stake of Operating Paint Business of Gem Paints to be acquired post demerger of Operating Paint Business of Gem Paints Private Limited. The Operating Paint Business of Gem Paints Private Limited is proposed to be demerged to a wholly owned subsidiary of Gem Paints Private Limited viz. Esha Paints Private Limited. Upon the completion of demerger, Astral will acquire 51% equity shares of Esha Paints Private Limited against the redemption of OCDs. The balance 49% equity stake will be acquired by Astral over a period of 5 years in tranches as per the Share Purchase Agreement entered between the parties. Upon completion of demerger of Operating Paint Business of Gem Paints, Astral shall acquire 51% equity stake of Resulting Company (Esha Paints Private Limited). Astral Board of Directors in their meeting held today approved to acquire 51% controlling equity stake in Operating Paint Business of Gem Paints Private Limited. As of July 17, 2023, National Company Law Tribunal, Bengaluru Bench sanctioned the Scheme of Arrangement (Scheme) between Gem Paints Private Limited (transferor company) and Esha Paints Private Limited (Transferee Company) and their respective shareholders and creditors. The acquisition of 51% equity stake in the Operating Paint Business of Gem Paints Private Limited is expected upon completed upon completion of demerger March 31, 2023 (tentative). Rajeev Vidhani and Anand Mehta of Khaitan & Co. provided due diligence to Astral Limited.
Astral Limited (BSE:532830) has entered into definitive agreements to acquire 51% stake in Operating paint business of Gem Paints from Gem Paints Limited on August 1, 2023. The name of Esha Paints Private Limited stands changed to Gem Paints Private Limited subject to necessary approvals. Balance 49% equity stake will be acquired by Astral over a period of 5 years in tranches, as per the Share Purchase Agreement entered between the parties.
Astral Limited is an India-based company, which is engaged in the manufacturing of chlorinated polyvinyl chloride (CPVC) pipes and fittings. The Company's segments include Plumbing, and Paints and Adhesives. The Company operates across seven sectors, encompassing pipes and fittings; water tanks; adhesives, construction chemicals and sealants; infrastructure; faucets and sanitaryware; paints, and specialized valves. In the pipes and fittings sector, the Company offers plumbing systems, drainage system, cable protection system, agriculture system, solvent cements and specialized fittings. In the water tanks sector, it offers roto molding tanks, blow molding tanks and loft tanks. In the infrastructure sector, it offers drainage, cable protection and PT duct system. In the faucets and sanitaryware sector, it offers faucets, sanitaryware, cisterns, showers and bathroom accessories. The Company offers protective coatings, industrial coatings and decorative coatings in the paint sector.