NEW DELHI: JSW Paints, led by Sajjan Jindal, is close to acquiring Akzo Nobel India, valuing the Dutch parent Akzo Nobel NV’s 74.76% stake at around Rs 9,000 crore ($1.1 billion).This pegs the total valuation of the Indian unit between Rs 12,000-12,200 crore — a 25% discount to its current market price, as per the Economic Times report.If finalised, the acquisition will elevate JSW Paints to the fourth-largest player in India’s decorative paints market and second in the industrial paints segment, significantly strengthening its presence.Akzo Nobel India’s market capitalisation stands at Rs 16,380 crore, with its shares closing at Rs 3,582 on the BSE on May 23. The stock has gained 40% in the past year amid growing speculation of a stake sale. The acquisition will trigger an open offer for an additional 26% of Akzo Nobel India, based on regulatory norms and the average share price over the past 60 days. The company has about Rs 700 crore in cash, expected to be distributed to shareholders as dividends.JSW plans to fund the buyout with Rs 3,000 crore in promoter equity and another Rs 3,000 crore in bank financing, with lenders including Deutsche Bank, MUFG, and Axis Bank. The agreement is expected to be finalised by mid-June within a 30-day exclusivity window.The deal follows JSW’s successful bid over a consortium of Advent International and Indigo Paints. If completed, it could also bring JSW Paints closer to achieving Rs 10,000 crore in annual revenue, setting the stage for a potential IPO.Akzo Nobel India, which has a 7% market share, offers a diverse range of products from decorative paints to industrial and marine coatings.
